FEATURES OF VAT TAXATION IN PUBLIC SECTOR INSTITUTIONS

Abstract

The article examines the features of VAT taxation of public sector institutions in the context of the modern development of the public finance system of Ukraine. It is substantiated that the features of the activities of budget institutions are related to budget financing, non-profit status and a combination of taxable and exempt transactions. The regulatory and legal framework for registering budget institutions as VAT payers, the procedure for forming tax liabilities and tax credits, and the features of applying tax rates in accordance with the provisions of the Tax Code of Ukraine are analyzed. The main types of transactions that are exempt from VAT taxation in the activities of public sector institutions are determined. It was determined that budget institutions carry out both taxable and tax-exempt transactions. This approach necessitates the proper organization of tax accounting, the differentiation of types of business transactions, and the correct formation of tax liabilities and tax credits. The features of maintaining separate accounting for taxable and non-taxable transactions, the procedure for calculating offsetting tax liabilities and proportional distribution of tax credits are investigated. As a result of the study, the need to improve the organization of tax accounting and increase the efficiency of VAT administration in budget institutions in order to ensure transparency of financial activities and rational use of budget resources is substantiated. The study substantiates that effective VAT administration in budget institutions is important for ensuring the transparency of financial activities and the rational use of budget resources. The features of documentary confirmation of business transactions, the application of tax benefits, and maintaining separate accounting require increased attention from public sector institutions. Current practice justifies the need to maintain separate tax accounting and correctly determine tax liabilities, which is an important prerequisite for ensuring the effective functioning of the public finance system. This will help minimize tax risks, comply with the requirements of current legislation, and increase the efficiency of the public finance system.