VALUE ADDED TAX AS THE MOST IMPORTANT FISCAL REVENUE OF SERBIA

In this paper our aim is to to investigate the participation of the value added tax in the revenue structure of Serbia and his significance for Serbian tax system. Value added tax in theory avoids the cascade effect of sales tax by taxing only the value added at each stage of production-transport cycle. For this reason, throughout the world, VAT has been gaining favor over traditional sales taxes. As the most widespread tax in the world it occupies a central place in the group of the consumption taxes, and in many countries it is the most abundant form of taxation. The results show that value added tax is the most important form of taxation in Serbia as well as in most of the countries in which it exists.