VAT refund and its impact on the general budget of the State in the years 2020-2021-2022

VAT is the tax that represents an important item within tax revenue and is used worldwide due to its contributory capacity. The VAT refund is a mechanism used to encourage production, investment and the economy of families, however Distribution efficiency is not adequate and this mechanism, together with reduced rates and exemptions, contribute to increasing fiscal tax expenditure. Theresearch is aimed at analyzing the VAT refund and its impact on the general budget of the state, it becomes a correlational, non-experimental and longitudinal research, of a descriptive nature and quantitative approach, the Pearson coefficient and Spearman's Rho were used as statistical measures. The results reflect that VAT is one of the main taxes that make up tax revenues, VAT revenues presented significant variations of decreases in the study periods, the refund for its part reflected a progressive increase. The Pearson and Spearman correlation coefficients suggest an inverse relationship between permanent income and VAT refunds and underline the importance of implementing fiscal policies to stabilize these variables and ensure long-term financial sustainability.