EVALUATION OF THE PUBLIC EFFICIENCY OF THE TAX FREE SYSTEM

The article offers a methodological approach to assessing the public effectiveness of the implementation and operation of the system of refund of value added tax to foreign citizens when exporting goods intended for personal use in personal Luggage outside the country (the Tax free system). The evaluation method is described, the main cash flows that should be taken into account when evaluating this event are highlighted, and approaches to calculating these flows and predicting the parameters of calculation formulas are proposed. Public cost-effectiveness associated with the system Tax free (cost of the budget for the establishment and operation of the system to compensate foreign nationals paid by them when purchasing goods tax) is proposed to be based on profit growth in those areas that are directly related to foreign tourist flow: trade, tourism, hotel business, public catering. The calculation is based on the hypothesis of an increase in trade turnover due to the introduction and development of the free Tax system in the country, including due to an additional influx of tourists with any purpose of travel, due to the possibility of VAT refund when purchasing consumer goods. This hypothesis is proved by long-term statistics on sales of consumer goods using the Tax free system in different regions of the world (the system is currently implemented in more than 50 countries). The increase in budget revenues due to import customs duties on imported goods sold to foreign citizens with VAT refund, as well as without the use of the Tax free system, is also considered as an inflow of funds.

Tax-free system, VAT refund, public efficiency, efficiency criterion, costs, results, investments, net present value, tourist flow, growth of trade turnover.

Mironova I. A., Tishchenko T. I. Evaluation of the public efficiency of the tax free system. Business. Education. Law, 2020, no. 2, pp. 129–133. DOI: 10.25683/VOLBI.2020.51.217.