Falsification of financial statements in order to evade VAT

The fight against tax evasion has been an urgent topic in the relationship between the state and business for thousands of years. Tax concealment affects financial performance and falsifies financial statements. These actions can lead to significant negative consequences for management, investors, and the state budget. The paper highlights the main types and purposes of falsification of financial statements. The ambiguity in understanding the causes of violations of laws is analyzed. Using a practical example, the methodology of accounting for bonuses for achieving the volume of purchases from both the seller and the buyer is revealed. The possibility of a dual understanding of the same laws from the point of view of benefits for the taxpayer and underfunding of the state budget is considered on the example of a court case on partially invalidating a decision of a tax authority. Effective measures to prevent VAT evasion have also been identified.