Research Into The Reform Of VAT To Expand Around

It has been30years since Value-added tax was established in China. In the3decades,some significant reforms happened and every move played an important role in improvingthe Value-added tax system. At the same time, some problems rose in the process. After theComprehensive Tax Reform in1994, two major problems remained: Unreasonablefixed-assets deduction and narrow tax scope. The former has been solved through thesuccessful VAT reform in2009and the latter remains to be settled. Meanwhile, the rapiddevelopment of Chinese economy and the fierce international competition make the taxscope issue more important. Besides, VAT scope reform was formally placed on the agenda.Given that practical significance, the author will give a thorough analysis to the necessities,current situation and the difficulties, as well as a further suggestion on the possible ways oftax reform in China.There are five parts in the essay:In the first part, the author will introduce the background and significance, a literaturereview in home and abroad, research method, innovation ideas and limitations.In the second part, the theory basis of VAT scope reform will be discussed; thedefinition and features of VAT, tax scope and taxable model of goods and service tax willbe explained.In the third part, the author will list the practical evidence of China’s VAT scopereform and give a further explanation of the necessities of VAT scope reform.In the fourth part, the author will present a thorough analysis of the current situationand difficulties, which will be analyzed in three aspects: fiscal revenue, tax division fiscalsystem and the design of taxation system of VAT.In the last part, the author will talk about the methods to deepen the VAT scope reform.In the first place, design framework will be discussed and suggestions about tax systemwill be made. In the second place, there will be a discussion on how to make the tax scopereform, increment tax on land value reform and consumption tax reform connected. Finally,the benefit arrangement between central government and local government will bediscussed.