Abstract:

Value added tax is one of the key elements of the taxation system in most countries of the world. The article looks at the role and significance of value-added tax (VAT) in the national revenue systems of Russia and China. The author examines VAT rates in Russia, China and other countries and analyses the expediency and feasibility of synchronizing the standard VAT rate in Russia and China as part of the Silk Road Economic Belt project. The author analyzes the system of VAT rates in Russia and China that include standard, reduced, and special rates. Positive and negative effects that occur as a result of charging differing rates and a single positive rate of VAT are studied. The author proves the need to abolish the reduced VAT rates in Russia and in China and to switch over to a single positive VAT rate. The conclusion is drawn that a transition to a unified (identical) VAT rate in Russia and in China could spur the implementation of the Silk Road Economic Belt project, but it would be difficult to agree on the rate and appears unnecessary. At the same time, applying a country-specific flat positive VAT rate in each of the countries (Russia, China) would streamline the process of calculating and regulating the tax, reduce tax evasion, considerably increase VAT revenue and improve the efficiency of VAT collection.