In late October 2014, the Serbian Parliament adopted the amended budget for 2014, with related laws, which provided for cuts of pensions and salaries of all employees in the public sector. However, sustainable financial stability cannot be established if only short-term measures in the reduction of salaries and pensions are to be applied. In the coming years, the budget deficit will certainly increase if other austerity measures are absent, as well as measures to increase budget revenues, based on the increase in production and taking radical measures for reducing the grey economy to proportions that can be considered economically tolerable. If the government fails to demonstrate readiness to reduce tax evasion in an organized, law-based way in almost all activities, a solution for covering the budget deficit will, in the future, have to be looked for in further cuts of salaries and pensions, regardless of the consequences that these measures entail in terms of the country's stability and security. Instead of efforts to withhold, at any cost, the revenues belonging to the country, not to them, companies must focus on increasing the operating efficiency in the conditions of legal implementation of production and transaction processes. The transfer from grey economy to legal economic activities will multiply compensate the money amounts formerly acquired by stealing from the state. This paper has exactly such an educational goal, focusing on the VAT as the most important form of taxation, given its dominant share in the budget revenues of the Republic of Serbia (approx. 50%). Better collection of taxes cannot be achieved without enforcement of rigorous sanctions and planned control of calculation and payment of tax and other government's source revenues by highly moral, incorruptible persons, top experts in systemic solutions regulating the tax liabilities.