Methodological Approach to Assessing the Tax Reliability of Supply Contracts Under Tax Monitoring

Abstract

The relevance of the study is determined by the need to enhance the tax reliability of supply contracts as one of the key instruments for ensuring the legality of business transactions, protecting the taxpayer’s right to input value-added tax (VAT) credit, and minimizing tax monitoring risks. The growing number of disputes concerning the substance of business transactions, the registration of tax invoices, and the adequacy of documentary support for supplies necessitates the development of scientifically grounded approaches to the comprehensive assessment of contract provisions prior to contract execution. The purpose of the study is to develop a methodological approach to assessing the tax reliability of supply contracts based on a system of indicators formed with due regard to contractual practice, tax legislation requirements, the State Tax Service’s tax information codes, and the case law of the Supreme Court of Ukraine. The research employs methods of analysis and synthesis, content analysis of contractual documentation, comparative analysis, generalization of judicial practice, systematization, expert assessment, and an integral assessment method. The information base of the study comprises twenty actual supply contracts, regulatory legal acts, the Handbook of Tax Information Codes issued by the State Tax Service of Ukraine, and the case law of the Supreme Court of Ukraine. The study systematizes tax mechanisms incorporated into supply contracts, identifies the characteristics of their practical application, develops a system of ten indicators for assessing the tax reliability of supply contracts, refines their weighting coefficients based on judicial practice, and proposes an integral indicator for determining the level of tax reliability of a supply contract. A methodological model has been developed that provides a consistent assessment of contractual provisions, enables the identification of potential tax risks before contract conclusion, and supports managerial decision-making regarding the improvement of contractual terms. The practical significance of the findings lies in the possibility of applying the proposed methodology by business entities, auditors, legal departments, and tax consultants to enhance the tax security of business transactions and prevent tax disputes.