Modalities of value added tax evasion in the Republic of Serbia

Abstract

The problem of evasion of value added tax at the time of fiscal consolidation in Serbia is significant and in that sense, this work should contribute to shedding light on the modalities of this tax evasion. Although research shows that the value added tax leaves less room for tax evasion, the experience of many countries shows that the value added tax is subject to fraud. The paper discusses the main factors that influence the decision of a taxpayer to avoid paying taxes. After noting a scale of tax gap, the individual cases are analyzed in which taxpayers evade paying value added tax in a legal or illegal manner.

Keywords

• evasion
• value added tax
• tax gap