Administration, accounting, reporting, and monitoring of value-added tax settlements within the enterprise management system

Abstract

The purpose of this study is to systematize and critically analyze existing approaches, provide a scientific rationale, and develop practical recommendations for improving the administration, accounting support, reporting, and control of value-added tax settlements within the enterprise management system. It has been established that the effectiveness of VAT administration during a period of martial law directly depends on the level of organization of accounting and information support and the quality of internal audit at enterprises. It is the integration of modern information technologies with the accounting system that creates the prerequisites for the timely recording of tax transactions and an increase in the level of tax transparency in business. It has been determined that the administration, accounting support, reporting, and control of VAT settlements are the focus of attention for both modern scholars and practitioners, since the effectiveness of the functioning of this tax system largely depends on the quality of the accounting information generated. The issue of the proper form for establishing accounting rules regarding VAT is not only methodological but also managerial and legal in nature. A properly structured system of internal documents helps minimize tax risks, increase the transparency of accounting procedures, and establish an adequate evidentiary basis in the event of disputes with regulatory authorities. A clearly regulated system of synthetic and analytical accounts facilitates the formation of an adequate evidentiary basis in the event of tax audits. A detailed list of subaccounts for synthetic and analytical accounting is provided, with particular attention paid to the consolidation of accounting and reporting support and the components of internal control over a separate business entity’s VAT calculation.