Smart Governance: Digitalization of Tax Control in the Russian Federation to Increase VAT Collection

The concept of “Smart Government” is increasingly reflected in the policies of various States. At the same time, the development of this concept is reflected in many areas, including in the field of tax relations. Thus, digitalization of the activities of tax authorities allows, on the one hand, to simplify the process of calculating taxes and fees payable to citizens and organizations, to provide them with up-to-date information about changes in legislation and current tax benefits, and, on the other hand, enables tax authorities to automate part of the work, increasing the efficiency of their activities. To date, a significant part of tax revenues in the Russian Federation are VAT receipts. At the same time, positive dynamics of the growth of these receipts has been observed for a long time. The positive trend was facilitated by the gradual introduction of the latest digital tools into the VAT calculation and payment control system. This chapter systematizes information and identifies the advantages and disadvantages of digitalization of this tax, as well as suggests possible measures to further increase the collection of VAT.