Study On Enlarging The VAT Range

The expansion of VAT range is a hot issue in recent years. After making experiments in cities as Shanghai, the reform over the expansion of VAT has been pulling open heavy curtain.In traditional sales--tax—paying industries, there still some industries such as banks are not in the experiments. However, as the reform of the expansion of VAT is constant carried forward, all the enterprises will be screened into the collection range of vat. What this paper mainly discusses is the influence of the expansion of vat collection range and why banks should be screened into the VAT collection range of and how to design the vat system of banks.As is known to all, financial industry, as a pillar of one country’s economy, plays a important role in economy development. Once it goes wrong, one country’s economy may be faced with heavy blow, even risks paralysis. And banking industry, as the main part of modern financial industry and the hub of national economy, its state of operation has a significant impact to financial industry and real economy. Maintaining the normal operation and healthy development of banks is the essential condition of one country’s economy system. In summary, taking banking industry as the object of study is necessary and meaningful.On the foundation of drawing on the experiences of other countries and estimating the vary of banking industry tax burden of collecting vat, this paper collects related banking industry latest data, calculates and forecasts the tax burden change of collecting vat, raises the existing problems of the banking industry tax system, advises to bring banking industry into VAT collection and proposes some policies of collecting VAT on banking industry.