The System And Practice Analysis On Value Added Tax

The main contents of this article are arranged as follows:The first part introduces the selection of the construction industry as the entry point of analysis of the transformation from business tax to the value-added tax;the construction industry is an important industry of the national economy,and conducive to a comprehensive measure of the actual effect of value-added tax transformed from business tax with its industry economic activities being complex.At the same time,the principle of value-added tax system is introduced in order to understand the reasons for a comprehensive change in value-added tax.In addition,a brief review of the history of China's value added tax is conducted.On this basis,this part makes a comparative analysis of the construction industry business tax and construction industry value added tax elements.The second part studies on the effect of tax burden reduce on the construction industry due to value added tax.Although the transformation from the business tax to the value added tax is aimed at reducing the tax burden as a policy objective,in fact there are a lot of subjects engaged in construction industry many of which are small and medium enterprises,and it results in the part of the input tax not deducted for the small and medium enterprises can not provide effective basis for the downstream input tax basis.Moreover,the forecast that the full conversion of value-added tax will contribute to the reduce of tax burden is based on the calculation of the current purchase of fixed assets as a basis for deductible input tax,but for most of the enterprises,the purchase of fixed assets is not frequent economic activities and they can not enjoy the benefits.The third part concerns about the occurance of value added tax obligation.After the full increase of the value of the tax,the point of time for the occurance of value added tax obligation is confirmed when issuing an invoice or the receive of the payment.However,pursuant to the basic logic of value added tax,the value added tax is a tax levied on the behavior of providing goods or services,then the time when providing goods or services should be confirmed as the point of time for the occurance of value added tax obligation,and then the time when the tax liability occurs are supplemented by invoices and payment.The fourth part focuses on the value added taxpayer system including the analysis of existing small-scale taxpayer system and the proposed establishment of VAT Group system.Small-scale taxpayers cut the value-added tax deduction chain,and results in the repeated taxation and its collection efficiency is also low;it is recommended to cancel the small-scale taxpayer system,and at the same time increase the value-added tax threshold.VAT Group system is a kind of taxable way,and the taxpayer being the members of the Group can be ignored with the Group itself being deemed as a tax subject and applied to the tax law.The fifth part is the summary of the previous chapters and puts forward that the transformation from the business tax to the value added tax is not the end of the value added tax system but the beginning to polish and refine the value added tax.According to the foregoing description,it is proposed to adjust the VAT tax point for the occurance of value added tax obligation,cancel the small-scale taxpayers,and establish the VAT Group system.