Chinese Vat

Value-added tax (VAT) is the main type of the turnover taxes in China, and it plays an important role in the whole tax system and the national fiscal revenue. Value-added tax is a vital part of the reform of the taxation system during the present stage of consummating the market economy. It can reduce the burden of the enterprises, help the economy and taxation system of China get in line with the international standard, enhance the corporate incentive system and push the corporate development forward. It concerns the development of the old industrial base and the strategic adjustment and optimization of the national economic structure.As an major reform of the taxation system, value-added tax will involve the balance of the benefits between the country and the enterprises. It must be based on the actual situation of different places and carried out steadily in order to achieve the expectations. China adopted the production-typed VAT according to the financial and economic situation when the taxation system was reformed in 1994. China also carried out the steady investment policy for the fixed assets based on the small financial scale, otherwise it would bring negative effects to the fiscal revenue if the offsetting scope of VAT was enlarged. Therefore, to choose the production-typed VAT was closely connected with the actual situation of economic development at that time. China has established the socialist market economy preliminarily in these ten years since the taxation system was put into practice, the financial and economic situation has changed a lot, and the Chinese economy is getting in line with the global norms, but the production-typed VAT couldn't meet the demand of the economic development. Therefore, it's necessary to study how to realize the VAT transformation.This paper discusses the relating issues on the Chinese VAT transformation in five parts. The first part explains value of this thesis, research methods and the creativity and limitation of this paper. The second part analyzes the types of VAT and compares the different effects of three types of VAT on the fiscal revenue, economic development and the trade of import and export. The third part compares and analyzes...