Transformation of Tax Regulation in Eu Countries: Positive Experience for Ukraine

Abstract

Introduction. Ukraine's active progress towards integration with the European social and economic space requires an update of domestic fiscal policy to ensure adequate cooperation with European countries. The need for changes in tax regulation in the context of integration processes actualises the issue of generalizing the features of fiscal policy in the EU with the identification of the most positive experience of reforming it. Methods. The following methds are used in conducting the research: systematic, institutional methods (to study the tax system and mechanisms for regulating tax relations in individual EU countries), the trend analysis method (to analyze the dynamics of tax rates and tax revenues in EU countries). Eurostat data on major tax aggregates of national accounts of different countries were used as an information source. Results. The current tax policy of EU countries is characterized by the co-ordination of the interests of each state, the abolition of inefficient elements of tax systems and the renunciation of nominal tax sovereignty. Bid sizes are not uniform and tax rates are quite low. The effectiveness of the EU tax system is manifested primarily in the distribution of taxes, that is, in their share in the overall structure of tax revenues. The highest is the share of indirect taxes, with the average value of the share of VAT fluctuating within 20-30%, the share of personal tax - within 8-30%. Considering the positive experience of the EU member states, the main directions of transformation of tax regulation of Ukraine are the implementation of EU norms in the field of taxation into the legal system and tax practice: improvement of tax policy principles, as well as modification of the national structure of tax types in accordance with European standards; ensuring the systematic and efficient functioning of the internal taxation regime and the tax administration process. Discussion. Further scientific research should cover the development and use of state-of-the-art analytical tools for tax burden forecasting and fiscal regulation effectiveness. Keywords: tax system, fiscal policy, tax burden, tax administration, taxpayers, European integration, economic integration.