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The article considers the most urgent problem – the increase in VAT from 18% to 20%. It is generally known that the VAT is included in the price of the goods, the work of the service or in the tariff. This primarily accelerates the growth of prices, as the VAT is paid by all consumers. Increasing the VAT from 18% to 20% (by +2 percentage points) will make business to skyrocket prices for goods, works and services, since no one wants to lose their profits. The consumers confronted with high prices will reduce the demand. The article is of interest to economists in the field of taxation.

vestnik moskovskogo gosudarstvennogo oblastnogo universiteta. seriâ: èkonomika/vestnik moskovskogo gosudarstvennogo oblastnogo universiteta. seriâ èkonomika

THE VAT RATE INCREASE AND ITS IMPACT ON THE BUYER