Chapter II. Mechanism of vat

2.1 Explanation of vat.

Isolate conditional process chain comprising production of raw materials, parts and components, finished goods, and the movement of these products in the supply network of wholesale and retail trade, and ending with the end user.

The end-user according to the law is not a VAT payer, but the price of goods purchased by them, contains a certain amount of value added tax VAT kn.

Consider the mechanism of interaction of any taxpayer VAT - party process chain with its counterparts - the supplier, on the one hand, and the buyer - the other:

Organization - the taxpayer puts its purchaser an invoice for the sale of goods (works, services) with the wholesale price charged to VAT and VAT received from the buyer. This VAT is named either "received" or "emerging" or "the tax imposed by the taxpayer to the buyer (customer) of goods (works, services)."

At the same time exposes the provider to the payer in the account - the VAT invoice and the payer pays the VAT to its supplier. This VAT is named either "paid" or "falling" or "tax imposed on the taxpayer by the seller (contractor) of goods (works, services)."

The budget of the taxpayer transfers the difference (Δ) between the received and taxes paid: VAT = VAT received - VAT paid. It is said that the amount of VAT to be paid "deductible." Deductible amount of VAT to be charged to a taxpayer and paid to them when purchasing goods (works, services) in Kazakhstan, or paid by the taxpayer for goods imported into the customs territory of the Kazakhstan. If the taxpayer is legally exempt from taxation on value added tax, which means that by implementing the goods (works, services) and exposing its purchaser an invoice, he puts on the invoice stamped "not subject to VAT." The taxpayer does not receive from the buyer as revenue VAT receiver

At each stage of the chain to the purchase price added to the new value, which is subject to tax, and the value of Δj can be viewed as a tax on established at this stage, the value added. So, Δ3 - a tax on the value added generated in plants producing finished products.

Standing at the beginning of the chain enterprise has no source (or assume that paid VAT is zero), and so completely transferred to the budget resulting VAT.

If we sum payments to the budget of all enterprises - payers:

VAT = ΣΔj = (VAT 2 - 0) + (VAT 3 - VAT 2) + (VAT 4 - VAT 3) + (VAT 5- VAT 4) + (VAT kp - VAT 5) = VAT kp, we obtain that the budget received an amount equal VAT kp, is taxes in this chain end-users fully paid, and the amount of tax listed companies - taxpayers - is only appropriately distributed between the value VAT kp.

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Thus, the VAT as a form of indirect taxation falls into the budget of the citizens-individuals, but the citizens themselves did not make. However, buying goods, the price of which is already on the tax, they are native speakers, although lists of VAT to the budget they do not, and the sellers of the goods. VAT, like all indirect taxes actually paid by those who spend their incomes. Indirect taxes are paid more, those who purchase goods in large amount. Indirect taxes - taxes on expenses. Who spends more, the more and pay.