Study On The Value-Added Tax Transition In China

VAT, with its special advantages,rapidly became one of the main taxes in China in the 90s of last century,and has made great contribution to the aspects of financial revenue and economy development. However,during the initial stage,in order to deal with the problems of over-done investment for fixed assets,the unbalance of industry structure and spiral of inflation,China implemented the productive-type VAT. Over the Past ten years,with the transformation of macro economy in China,the Productive-type VAT restricts the investment and brings many problems in exports. It proves that the productive-type VAT does not meet the demand of economy development in China any more. In order to improve the situation,the central government of China began the transformation of VAT and three northeastern provinces were chosen as the test fields of reform in July of 2004. In the Government Report for the 10 th National People's Congress,Premier Wen Jia Bao also proposed to establish all- around schemes and measures of VAT transformation. Therefore,the VAT transformation is an urgent issue to study.This article puts emphasis on studying the transformation of VAT in China,which was separately explained in five chapters. The first chapter of the topics explained in this paper background, and research purposes, Introduction of value-added tax restructuring of the current status of theoretical research. The second chapter describes the concept of a value-added tax, classification characteristics, And to focus on macro tax base, the actual tax burden rate, encourage investment and promote industrial upgrading, and other aspects of tax collection and management costs for all types of value-added tax for comparative analysis. Chapter III introduced VAT from the theoretical basis for the restructuring start, Recalling China's value-added tax system the course of development of the existing model, analysis of China's value-added tax system the existing problems, In particular for the production of value-added tax disadvantages, the advantages of consumption-based value-added tax, And with the status quo of China's macro-economy, the level of tax collection and management of value-added tax on the preparation for the transition theory, the transformation of value-added tax conditions and the feasibility of VAT transition, elaborated on China's value-added tax restructuring necessity. At the same time, the proposed value-added tax in the transition process and preventing the risk. Chapter IV presents a foreign tax on the basic conditions and transition characteristics, and it summed up all types of value-added tax and value-added tax restructuring choose experiences, in the restructuring of China's value-added tax should be learning from international experience as well as the attention of the complete transformation of China's value-added tax pilot proposal.Chapter V on the northeastern region of value-added tax restructuring the basic situation of the pilot, the pilot pointed out the restructuring of the existing problems in China at the same time for the full implementation of value-added tax restructuring put forward their views. Proposed expanded value-added tax revenue from the scope of reasonable design applicable tax rates, adjust and perfect the small-scale taxpayers regulations, regulating tax deductions and tax relief, strengthening tax information of building and strengthening tax reform and improvement initiatives.In sum, In this paper, the basic theory of value-added tax, the need for restructuring, timing, and a series of specific measures related issues were discussed, and theoretical research on the basis of full implementation of the consumption tax should pay attention to the process made several policy recommendations . The aim is to ensure better value in light of China's market economy, while supporting the sustainability of China's economic development, and improving the international competitiveness of domestic enterprises force, and to improve China's overall national strength. The author hopes that this article can be firm in the country to fully implement the restructuring confidence in the value-added tax benefit, and value-added tax restructuring will help the healthy development of the work.