LEGAL REGULATION OF TAX CREDIT IN THE CONTEXT OF DIGITALISATION OF TAX ADMINISTRATION

Abstract

The current stage of development of tax relations in Ukraine is characterised by active digitisation of value added tax administration processes, which necessitates a rethinking of approaches to the legal regulation of tax credits. Despite the introduction of the Unified Register of Tax Invoices, automated monitoring systems and electronic document management, in practice there are still a significant number of conflicts, technical limitations and controversial situations that complicate the exercise of taxpayers' right to tax credit. The problem becomes particularly acute in a state of martial law, when the smooth functioning of business and stable budget revenues are of critical importance. The lack of proper registration of tax invoices, the blocking of tax documents, imperfections, and gaps in legal regulation pose a threat to the effectiveness of tax administration and upset the balance of interests between the state and taxpayers. In view of this, it is important to study and improve the legal mechanism for forming tax credits in the context of the digitalisation of tax administration.

The purpose of the article is to provide a comprehensive analysis of the legal regulation of tax credits in the context of the digitalisation of tax administration, to clarify the impact of electronic services, automated control systems and the Unified Register of Tax Invoices on the formation, confirmation and implementation of taxpayers' rights to tax credits.

To achieve the set goal, a comprehensive approach was used, which determines the application of general scientific and special scientific research methods. In particular, the functional method was used to determine the functions of entities that ensure the formation of tax credits. The formal legal method was used to analyse the provisions of legal acts regulating tax credits. The systemic structural method was used to identify the main features of the legal regulation of tax credits. Methods of analysis, synthesis, induction, deduction and analogy were also used to form conclusions and proposals.

The study found that the digitisation of tax administration has significantly transformed the mechanism for forming value added tax credits, increasing its transparency, controllability and automation. The legal regulation of the functioning of electronic services, in particular the Unified Register of Tax Invoices and the VAT electronic administration system, which are key instruments for ensuring the reliability of tax data and the timeliness of its processing, was analysed. It has been determined that one of the most problematic aspects remains the blocking of tax invoice registration and the lack of timely registration by the seller, which deprives the buyer of the opportunity to exercise their right to form a tax credit.

IIt is concluded that legal regulation of tax credits in the context of digitalisation of tax administration is becoming particularly relevant, as effective use of this institution directly affects the level of financial discipline among taxpayers and the transparency of tax relations. Digitalisation of tax administration contributes to more effective application of tax credit mechanisms. The following steps are proposed to improve the legal regulation of tax credits in the context of digitalisation, namely: 1) expanding the list of circumstances that may be grounds for adjusting the deadlines for fulfilling tax obligations; 2) strengthening information security requirements for electronic services; 3) integrating various state registers to improve the accuracy of data verification. Thus, the legal regulation of tax credits in the digital environment should combine regulatory and legal principles with modern technological capabilities, creating conditions for transparent, effective and fair tax administration.