The Research On Transition Of VAT Type In China

With economy development, China faces more opportunities and challenges after entering into WTO (World Trade Organization), and the perfecting of all mechanisms is very urgent. The VAT (Value-Added Tax), which has been implemented for 9 years in our country, has been adjusted and revised for many times, but the restriction of its type to economy is more and more obvious. The VAT of production type can't satisfy the needs of stimulating the investment, expanding the in-demand and improving the competition power of enterprises, and even becomes the unfavorable factor of hindering economy development.Applying marginal utility theory, investment multiplier principle in economics and tax fairness and efficiency theory in tax, supported by a large amount of authoritative data, combining qualitative analysis with quantitative analysis, this paper explored to study the feasibility, necessity, reality significance of the transition of VAT from production type to consumption type from type analysis, international reference, implementing situation, finance influence, international competition and investment, etc. By comparison of three types of VAT, combining with current economy situation, this paper disclosed that VAT of production type can' suit the needs of new economy situation. From the macro-economy and micro-business, this paper concluded that the transition of VAT from production type to consumption type is meaning and practical. At the same time, closely combined all kinds of practical problems in the course of transition, this paper put forward some concrete measures about the transition dealing with tax rate, levying range,the handling of the existing fixed assets, etc.This paper aimed to make the VAT suit to the reform of economy system and promote the continued, fast, and stable growth of the economy of our country. I expect it will be helpful to the scheme of VAT transition.