The Research On Differences Of The Effect Of VAT Transformation

VAT is the main tax type of China and the biggest part of national financialrevenue.That makes the reform of the VAT system will perform great effct in the taxreform of China.As the market economy of China is improving constantly,the formerVAT system can not adapt to the circumstance,causing double-taxation,insufficientinvestment,etc.Base on the reason above,the trial of VAT transformation begins in2004and officially puts into practice in2009.In the view of fuction fo tax system in the process of economy developing,thetransformation of VAT system is constricted by the regional economydevelopment,on the other side,the reform of VAT system can balance the regionaleconomy development.In order to bringing better effection of the consumption-basedVAT,we should take great consideration of the imbalance of the regional economy toperfect the tax system and balance the regional economy.In the operation of VATtransformation,the imbalance of regional economy of China play a big role in theVAT reform,especially the second-time VAT transformation.The difference ineconomy development,structure of industy and the fixed assets investing ability canrestrict the VAT reform,so the VAT transformation is not unilateral tax reform,but theactual status-based and wholly considerated integrated reform.This paper bases on the angle of regional economy development to measure andanalyse the pratical effect of the VAT transformation in every region in latest threeyears.The result shows that there is close connection between the effect of the VATtransformation and the regional economy developing status,the result also shows thatthe quantity of effect is different between regions.The variable of the paper are fixedassets and region gross product etc.The analysis of the relationship of variable andVAT transformation confirm the opinion that there is close connection between VATtransformation and regional economy development.Based on the statistical analyseand the practical status,the author think that the restriction of VAT levy bound,the imbalance of regional economy development and the difference of structure ofindustry are the reason which caused the difference of VAT transformation effcetbetween regions.The author alse believe that,when all comes to all, carrying out thesecond-time VAT transformation,expanding the levying bound of VAT,quickeningthe reform in the sales tax levied industy altering to VAT levied to make the structureof industry more reasonal,emboding the neutral character of VAT thoroughly andsetting up the purely consumption-type VAT to perfect the VAT system can solve theissue in a certain extent.In the mean time,in the interest of balancing regionaleconomy development,financial policy and industry policy should be implementactively to concert with the VAT transformation.