The article explores the legal foundations of value added tax (VAT) administration in Ukraine as one of the key components in shaping the country’s fiscal policy. It defines the term “administration” in both broad and narrow senses, examines its etymological origin, and analyzes its application in the context of tax law. Theoretical approaches to the concept of tax administration developed by Ukrainian and foreign scholars are discussed. Particular attention is given to the historical development of the VAT administration system in Ukraine, starting in 1991 with the adoption of the first VAT law, up to the present stage, marked by digitalization and the implementation of risk-based tax control mechanisms. Key reform milestones are identified, including the introduction of electronic reporting, the creation of the Electronic VAT Administration System (SEА VAT), the launch of the monitoring system (SMKOR), and the transition to SAF-T UA. The structure of the current VAT administration system is outlined, highlighting its components, functions, and the responsibilities of supervisory authorities such as the State Tax Service, the Ministry of Finance, the State Treasury Service, and the Customs Service. The article outlines the key issues in VAT administration, including excessive blocking of tax invoices, corruption risks, the human factor in decision-making, and delays in VAT refunds. It also analyzes statistical data provided by the Business Ombudsman Council of Ukraine regarding systemic weaknesses that arise due to the insufficient efficiency of the VAT administration system. The article identifies major issues in VAT administration, such as excessive blocking of tax invoices, corruption risks, the human factor in decision-making, and delays in VAT refunds. It emphasizes that the efficiency of VAT administration has a direct impact on the fiscal stability of the state and on the level of trust between the government and taxpayers. Based on the analysis, the article offers recommendations for improving the functionality of the VAT administration system, including refining risk criteria in SMKOR, enhancing the transparency of administrative procedures, strengthening electronic interaction, and minimizing the human element in decision-making. The research concludes with practical suggestions for improving the quality of VAT administration and the overall effectiveness of tax policy in Ukraine.
A. A. Katsalap (Tue,) studied this question.