COMPLIANCE-ORIENTED ADMINISTRATION OF VALUE-ADDED TAX IN UKRAINE: FISCAL EFFICIENCY, RISKS AND BUDGETARY COMPENSATION

Abstract

The article examines the peculiarities of compliance-oriented value added tax administration in Ukraine under the conditions of digital transformation of tax procedures and European integration changes. The study substantiates that VAT remains one of the key budget-forming taxes, while its administration is characterized by a high sensitivity to abuse in the field of tax credit formation, registration of tax invoices, fictitious document circulation and budget refund claims. In this context, the compliance approach is interpreted not only as a control tool, but also as a conceptual basis for a modern service-analytical model of tax administration focused on risk prevention, taxpayer segmentation, digital monitoring and the strengthening of tax trust. The paper proves that the practical implementation of compliance-oriented VAT administration in Ukraine is based on the combination of the electronic VAT administration system, risk-based monitoring of tax invoices, the tax risk management system, the Register of VAT refund applications and the institution of the compliance manager. It is established that such a model contributes to higher fiscal efficiency of VAT, more transparent refund procedures, lower administrative pressure on bona fide taxpayers and a more predictable tax environment. Particular attention is paid to European VAT administration benchmarks and to the need for institutional and technological approximation of the Ukrainian system to EU standards. The prospects for further development are associated with improving risk assessment mechanisms, expanding digital interaction, enhancing electronic audit and adapting national VAT administration practices to current European approaches. The practical value of the study lies in substantiating directions for improving VAT administration in Ukraine.