PECULIARITIES OF FUNCTIONING OF TAX SYSTEMS OF EU AND UKRAINE COUNTRIES AND WAYS OF ITS REFORM

Abstract

It is determined that in today’s conditions and the negative impact of market environment taxpayers have faced some difficulties in paying them and, accordingly, there is a need to study the tax system, identify its features, the need to identify advantages and disadvantages and reform, based on the experience of highly developed European Union . The article considers the current state of taxation in Ukraine and provides a general description of the process of tax collection in highly developed EU countries. The essence of tax and taxation, sources of tax and the concept of taxation in Ukraine are determined. It was found that taxation plays an important role in ensuring the implementation of state functions, as tax revenues are a significant part of the revenues of the Consolidated Budget of Ukraine. In addition, the tax system affects the distribution of income among the population and contributes to the goals of sustainable development by differentiating tax rates, tax bases and types of taxes. It is proved that it is important to take into account the experience of EU countries to reform the tax system, which will overcome income inequality and the shadow economy, improve tax control, stimulate the development of harmless and resource-efficient production, and help reduce the tax burden on small and medium businesses. Practical recommendations have been developed to improve the management of the tax mechanism in Ukraine, namely the introduction of a differentiated tax rate, increase the tax on the use of natural resources and the establishment of a tax on the use of plastic bags. Types of taxes and tax rates in Ukraine are analyzed, a set of measures to increase control over the payment of taxes in Ukraine has been developed, namely the transfer of settlements to non-cash form, the introduction of a three-stage system of verification of tax payments. Ways to improve the taxation process in Ukraine and increase control over the payment of taxes have been identified, which will eliminate the shortcomings of tax legislation, reduce the tax burden on businesses, and ensure the stability of tax revenues to the state budget.