Quality of VAT administration in OECD countries and Russia. Reform of the Russian system of tax collection.

The paper presents an analysis of international and domestic practices of VAT administration in OECD countries and in Russia, according to the results of which there were identified major constraints and factors affecting the quality of VAT administration. Assessment was made in terms of tentative implications of one of the options for reforming the VAT to the Russian Federation budget: the establishment of the flat VAT rate at 12%, VAT replacement with the sales tax, the transition to VAT taxation on the basis of a balance method. As an alternative of a revolutionary modernization of the tax, the paper presents a package of measures, the implementation of which with minor budgetary losses is able to ensure the impartiality and improve VAT collection efficiency.