Cross-border VAT Jurisdiction Of China Under The Digital Economy

At present,the digital economy is developing rapidly in the world and has inspired the economy of China.However,due to the rapid development and the wide range of influences,the digital economy has blurred the boundaries between goods and services,changed the nature of transactions.In addition,the expansion of the digital economy on a global scale results in cross-border VAT tax jurisdiction issues brought about by digital import and export trade have become more and more serious.Although many countries and international organizations have been discussing how to deal with the cross-border VAT jurisdiction problem brought by global digital economy,there is still no consensus and no measures that can be widely applied.Combined with the current deepening of the reform of the fiscal and taxation system,the reform of the VAT is inevitable.Using this opportunity,this paper will improve cross-border VAT jurisdiction system in China.There are two aspects to the innovation of this paper.The first is the novelty of the view.The second is the expansion of theoretical principles.This paper studies the issues of cross-border VAT jurisdiction in the digital economy through case analysis.First of all,this paper defines the concept of digital economy and classifies the digital economy into three modes: e-commerce,digital products and online services.Then it defines the VAT jurisdiction,and compares two VAT jurisdictions.This paper introduces China's current VAT jurisdiction system as the basic adoption of the acceptance jurisdiction and the supply jurisdiction,with the exception rules.Secondly,this paper deeply studies the issue of VAT jurisdiction arising from crossborder trade under different digital economic models through four cases,and finds that the current VAT jurisdiction rules lead to double taxation or double non-taxation,difficulties in determination of the place of taxation,tax discrimination,unclear on taxation object attributes and so on.Then the causes of these problems are analyzed.It is concluded that there are four main defects in China's current cross-border VAT rules in the digital economy.Then,this paper makes an international comparison and experience for the crossborder VAT jurisdiction system under the digital economy.It selects EU and OECD as the reference and comparison objects.It introduces the EU's construction of cross-border VAT rules in the past few years,especially the new rules of e-commerce.It introduces the principle of cross-border VAT jurisdiction in the International VAT/GST Guide for the digital economy put forward by the OECD.Finally,this paper proposes several principles to be followed in the improvement of China's cross-border VAT jurisdiction system in the digital economy: the principle of tax equity and efficiency,the principle of tax neutrality and the principle of international tax competition.After fully weighing these principles,it puts forward specific suggestions: determining the VAT jurisdiction,clarifying the criteria for determining the jurisdiction,improving the cross-border tax collection and management system,continuing to implement tax incentives and strengthening international coordination.