On The Transformation Of VAT Implementation Effect

On January 1st, 2009, China began to implement the new VAT scheme, which allows all parts of the country, all sectors to deduct the total input tax of the new purchased machinery and equipment in the output tax. The implementation of this program, marking China's VAT from production to consumption-type. Value-added tax transformation has a significant impact on the development of economic in China. First, this tax reform will completely solve our long-standing problem of double taxation, promote tax equity, and it will play an active role in promoting our construction of tax system; Secondly, the consumption-type VAT will reduce the burden of corporate companies, encourage technological innovation, thicken corporate profits and stimulate their willingness to invest, and conducive to enhancing the competitiveness of enterprises; Finally, the value-added tax will optimize China's industrial structure, stimulate economic growth and benefit to the increase of revenue in the long run.This paper studies on value-added tax, and give a specific analysis on the effect of system implementation of its reform process. Consolidated on the previous research, firstly, this paper analyze the relevant theories of value-added tax, then, starting from the definition and characteristics of the value-added tax, give a specific analysis on the differences of three types of value-added tax, and make some analysis on foreign practice. Secondly, the paper discusses VAT from its background, implementation process and specific content, which lay on foundation for the later study. Again, the paper studies on the effect of implementation, from the aspects of corporate influence, fiscal revenue and the macroeconomic impact, analyzes the specific impact of value-added tax transformation on our economy. Finally, the paper cites Xiangtan City as an example, use its actual data, to test ideas in the paper, and give some suggestions to improve the consumption-type VAT system.