Prospects for the Value-Added Tax Improvement in the Context of a Forced Digitalization of the Russian Economy

The article explores the current transformation of the value-added tax (VAT) on the territory of Russia in the context of an accelerated digitalization of the economy and aims to determine the prospects for the value-added tax improvement and for tax evasion control. First, different approaches to the definition of a digitized economy are described. Also, a rationale is substantiated for the provision that digitalization of the economy is the implementing, running and adjusting of digital technology, and digital economy is an operational space for the introduced technology. Further, the research considers the major challenges of VAT digitalization, the main of which is the reluctance of some categories of taxpayers to be included in the digital space. Then, the terms “digital VAT” and “smart VAT” are defined. It is also shown that the interaction between the taxation authority and taxpayers has been digitized. The study suggests that digitalization helps reduce VAT evasion, and also concludes that the main features of digitalization are: transition to a distant interaction of taxpayers and the taxation authority (an almost entire disposal of paper documents); introduction of digital tools for taxpayers and the taxation authority (a taxpayer's private account and automated VAT monitoring). The study identifies the key elements and levels of prospective models of “smart VAT” calculated and levied without human intervention (blockchain technology). It is expected that tax computation and charge-off from the taxpayer account will be in online mode, without tax returns filed.

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