VALUE ADDED TAX (VAT): ECONOMIC ESSENCE AND PRACTICAL SIGNIFICANCE

This article examines the economic nature and practical importance of Value Added Tax (VAT) as one of the most widely used indirect taxes in modern market economies. The study analyzes the mechanism of VAT calculation, its role in the formation of state budget revenues, and its influence on financial discipline and market regulation. Special attention is given to the principles of value-added taxation and the distribution of the tax burden along the production and supply chain. The article also evaluates the advantages and limitations of VAT as a fiscal and regulatory instrument.