Study On The Implementation Of Operation Of"Business Tax To Appreciation Duty" In China

Value added tax(VAT) is a kind of tax based on goods or commodities production and circulation of new value or added value for plan tax basis. In order to adapt to economic development, the tax system should reform continuously. From2004to2008, the gradual transformation of VAT was carried out in our country, and in2009, the production VAT to has been shifted to consumer VAT. Since2012, in the pilot cities of Shanghai, a transformation from business tax to VAT of the country was set out. In this paper, with the background of the transformation from business tax to VAT, the characteristics of business tax and value-added tax and their historical evolution process were analysed, the necessity and methods of this reform of taxitaion system in our country were studied, and the achievement in the pilot fields in Tianjin were presented by compareing the aspects before and after the reformation.The evolution of business tax and value-added tax were analyzed respectively. The origin, development history and present situation of the bussiness tax and VAT in our country were studied, and the main problems in different stages of the development of VAT in our country were recommended. The development direction of tax reform were summerized.The necessaty and method of tax reform in our country were studied. Several reasons to reform the tax system were presented, such as putting forward the law caused double taxation, labor services without included in the international regime for export tax rebates, lower power, not adapt to the adjustment of industrial structure, service industry tax burden is heavier, the current tax system is difficult to make the right decisions for the goverment. and tax operation practice problem makes it necessary to reform the tax system. The main tax reform pilot is concentrated in the way of tax rates, tax, tax calculation basis, service trade import and export, and the transitional arrangements during the pilot reforms into tax revenues belonging, transitional preferential tax policy, cross-regional tax coordination, and VAT deduction policy cohesion.Comparing the operation and alternation before and after the tax reform in the field of transportation industry, modern service industry and other industries in tianjin, and based on the classification and operation of industry, the situation and achievements of tax reformation were analysed.In the long run, although the VAT may make some tax increases in the industry fields, but after the reform, as included in the pilot service industry, transportation industry into the VAT deduction chain, its downstream customers will be increased because the input tax deductible and reduce the tax burden, business markets and sells will expand, and changes in plants could also enhance competitiveness and bargaining power for the comanies.