IMPROVEMENT OF THE INTERNAL CONTROL SYSTEM OF VAT TRANSACTIONS

Abstract

Internal tax control is an important component of the work of any organization. It helps to provide an effective information flow management system, which is necessary for an economic entity to make effective management decisions. VAT occupies one of the leading places in the structure of the organization's tax obligations to the state, while it is characterized by a complex procedure for determining the amounts that need to be transferred to the budget. For this reason, the creation of the internal control system of VAT transactions requires special attention. The article discusses the stages of internal control of the correctness of VAT calculation, as well as functional and risk-oriented approaches that are used to create a system of internal control of VAT transactions. The development of a program of control measures by an economic entity may become one of the possible directions for improving the system of internal control of VAT transactions. It will strengthen the main functions of all officials and financially responsible persons when they carry out VAT transactions in order to prevent possible threats and minimize the risks of financial activity of an economic entity. In addition, the article presents the possible functionality of subjects of internal control of VAT transactions in an organization, depending on the type of risk.