Study On The Problems And Countermeasures Of VAT Operation

The Change from Business Tax to Value-Added Tax is defined as "to replace business tax with value-added tax(VAT)”. VAT implementation has been regarded as the significant reform in current turnover tax system of China. It has made an effective improvement to the past double taxation and solved the problem with system fundamentally. Tax system has been in accordance with the international tax convention and gained more hyalinization and rationalization. The tax reform is based on the Pilot Proposals for the Change from Business Tax to Value-Added Tax approved by Ministry of Finance and State Administration of Taxation in November 2011. Shanghai city as the first city launched the reform of tax system on January 1, 2012. The industries related to VAT reform contain the land transport services, water transport services, air transport and pipeline transportation in transportation industry and development and technical services, information technology services, cultural and creative services; logistics support services and verification advisory services in modern service industry, tangible property leasing services. In April 2013 the fourth standing committee of State Council decided to expand the scope of some of the modern service industry and carry out the pilot industries above in the whole country since August 1st 2013, VAT in Zhangjiakou has been implemented smoothly for nearly 1 year, and achieved the expected goal from the running effect mainly as follows: the new tax system transition, the obvious effect of structural tax cuts, the financial system reform reverse effect, and improvement of small micro enterprise developing environment and promotion of the third industry development. But there also appeared a lot of new situation to work to improve in the future reform.With the expansion of propulsion and scope of implementing pilot enterprises, there are several problems needed to be improved including unreasonable tax system set, deduction of input tax deficiencies to push the high tax burden; the narrow scope of the pilot implementation, and theses problems may cause many adverse effects to social and economical development. So this thesis makes a deep research on VAT reform with those problems in Zhangjiakou VAT reform as an example and demonstrates the theoretical value and realistic significance to the VAT reform in China.This thesis analyzes the VAT internal and external background and the theory basis of policy-making and demonstrates the VAT practical significance and future influence. Secondly, through deep investigation to Zhangjiakou enterprises economic present situation, combined with the achievements, the existing problems and difficulties in Zhangjiakou State Tax Bureau VAT overall implementation, accordingly, this thesis also analyses the causes of the problem and discusses the concrete influences of the tax economic structure. Finally, this thesis puts forward concrete countermeasures and the suggestion to speed up the VAT reform, promote a new round of finance and tax system reform, and reduce the traffic and transportation industry tax rate for the added value tax. The author makes a deep research on this issue in the hope of having a clear grasp of the important tax system reform and being able to provide certain reference significance for VAT reform in China.