VAT in Russia is considered a tax introduced relatively recently. At the same time, a significant part of tax payments existing today was introduced back in the 11th and 10th centuries. VAT Russia, like other countries, began to be widely used only in the twentieth century.
A specific value-added tax scheme was developed in 1954 by the French economist Laura. Since 1958, this payment began to be used in France.
Tax Code VAT is classified as indirect taxes. Payments of this group are characterized mainly by a fiscal function. The appearance of indirect taxes is usually associated with an increase in state revenues. According to historical data, excise taxes served as the first indirect payments. They were levied on certain types of goods. VAT in Russia and other countries is a kind of counterbalance to these taxes, as it is used for all types of products.
Sales tax is similar in nature. A prerequisite for its occurrence was an acute shortage of funds due to large military spending during the First World War. It should be noted that the specified sales tax was levied at each stage of the movement of goods to the consumer. As a result, buyers were forced to purchase goods at significantly higher prices. This, in turn, caused discontent among both consumers and manufacturers. After the war, the tax was abolished. However, it was soon reintroduced as an additional source of income.
It should be noted that after the re-introduction of the tax was somewhat improved. So, now it was charged only once, as a rule, at the retail stage, which slightly slowed down the capital turnover. Along with this, funds quickly began to flow into the treasury, as the turnover of funds increased. However, by charging the tax in this way, the state also incurred losses due to the fact that it could not provide full control over all production stages and stages of goods circulation. All these factors formed the basis for the introduction of VAT in Russia and the world. Value added tax provided the state with control over the entire process of trade and production.
VAT was widespread due to the signing of an agreement on the formation of the EEC. Within the framework of the Economic Community, countries have pledged to harmonize their tax structures in accordance with the interests of forming a common market. Since 1967, VAT has been declared the main indirect tax in Europe. In 1991, the latest refinements were made to the tax application mechanism. Thus, the provisions of the new EEC directive were included in the legislation of the member countries of the community.
Today, VAT is levied in Russia, Indonesia, Turkey, Latin America and other countries. The rather extensive geography of the tax indicates its viability and compliance with the requirements of the current economy.
It should be noted several factors that contributed to the introduction of VAT in the practice of taxation.
First of all, these are the shortcomings that were characteristic of direct taxes. In particular, due to the excessive severity of taxation, large-scale tax evasion arose.
Another factor was the constant budget deficit. In this regard, there was a constant need to increase revenues, which was carried out by expanding the base and increasing the efficiency of taxation.
The third important factor was the need to improve existing systems, as well as bringing them into line with the current level of economic development.
Today, the mechanism by which payments are levied is identical in many countries.