Research on determinants of value added tax revenue

Abstract

Successful business activity leads to economic growth in the state. But if business tax policy is improperly conducted and business taxes are too high, that can lead to avoidance of paying taxes honestly and lack of collected tax revenues to the state budget. Value added tax is the main tax collected from business entities. It is also the main tax to the Lithuanian state budget. The goal of this article is to establish what factors determine value added tax revenue. To achieve this goal, is given the conception of value added tax and dynamics of collection of value added tax revenue. In the article using correlation analysis is evaluated the strength of the connection between value added tax revenue and changes of its determinants.