How Russia’s VAT analytics platform is affecting businesses

1 minute read 25 Oct 2019
By

Chris Sanger

EY Global Government and Risk Tax Leader and EY EMEIA and UK&I (Tax Centre) Tax Policy Leader

Passionate about improving tax policy. Problem solver. Globetrotter

1 minute read 25 Oct 2019

The country’s VAT gap has shrunk to 0.9% or less, likely one of the lowest in the world.

This video is one of six excerpts of an exclusive EY interview with Mikhail Mishustin, Commissioner of Russia's Federal Tax Service.

“The automatic VAT control system has been operational for three years now. It enables us to see creation of VAT in the whole Russian economy,” says Russian Tax Commissioner Mikhail Mishustin, the current chair of the Organisation for Economic Co-operation and Development (OECD) Forum on Tax Administration’s E-services and Digital Delivery Programme.

“We are able to track any transaction of any taxpayer anywhere in Russia and match it with what is reported by their customers and suppliers,” he explains. “All this is done with minimum human involvement, which makes the system objective and reduces risks.”

Watch more in our video series on how Russia is using technology to transform tax administration.

Summary

As a result of Russia’s VAT analytics platform, Russian taxpayers have adopted more compliant behavior.

About this article

By

Chris Sanger

EY Global Government and Risk Tax Leader and EY EMEIA and UK&I (Tax Centre) Tax Policy Leader

Passionate about improving tax policy. Problem solver. Globetrotter