Financial Analysis In The Evaluation Of The Use Of Value-added Tax

Tax assessment came into being accompanied by the constant improvement of taxcollection patterns and strengthening management of revenue sources to the objectiveneeds. At present most countries have established a relatively complete taxassessment system. Due to lack of understanding, China’s tax assessment started late,and led that its potential role has not been fully played out. Strengthen the taxassessment theory and methods of research and summarizing the practical experienceof local tax assessment have positive practical significance to better carry out thiswork, create a harmonious relationship between tax rate and improve the degree oftax compliance.This paper amends and improves the existing VAT assessment system and theVAT assessment model though a financial perspective by analyzing the basicprinciples of VAT assessment, methods and procedures, emphasizing the financialanalysis’ strengths and importance of the VAT assessment, and focusing on the lackand defects of the financial analysis in existing analytical methods and indicators ofVAT assessment.Then, the VAT assessment models are applied to the coal miningindustry to verify the actual effect of the VAT assessment in financial analysis. Thepaper is divided into four parts. The first chapter, introduction, describes thesignificance of the research, research status in all countries and the structure of text.The second chapter, the basic principles and method of VAT assessment, introducesthe main methods adopted by the major SAT in the current practice. The third chapter,the financial analysis in VAT assessment of coal mining industry, Aimed at the coalmining industry status and tax assessment method, introduces the models applied inpractice of VAT assessment of coal mining industry. The forth chapter, the financialanalysis and applying in VAT assessment of coal mining industry, aimed at existingdefect, modifies the financial analysis model of VAT assessment in coal miningindustry by financial analysis to early financial warning and detection of tax-relatedfinancial doubt as soon as possible. At last, the paper test the VAT assessment model’sapplication in coal mining industry.The importance and difficulty of paper isfinancial analysis in the application of VAT assessment and building of model, butalso the innovation of this paper. The paper has an important reference to otherindustries and tax assessment model of other tax categories.