The Problem And Proposal In The Pilot Work To Replace Business Tax With VAT

The pilot work to replace business tax with Value Added Tax(VAT),which beginning in 2012,is the most important,the most influential and the most significant tax system reform after the 1994 tax system reform of China.And also it is one of the most important turnover tax reform in the history of China after The People's Republic of China founded in 1949.The pilot work is an important move of which the central government wants to promote structural tax cuts,reform of the double taxation of turnover tax drawbacks,to reduce the impact of tax on the national economy of non neutral.The pilot work also is a significant move of currently promoting China's economic growth,promoting the transformation and upgrading of economic structure,the implementation of structural tax cuts,and an important measure to improve the Supply-side reform.Especially in the current pilot replacing business tax with value-added tax(VAT)"has entered the third phase expansion around the stage,reform the turnover tax system has entered the deep water area of reform,the original business tax,the most complex operation collection is most difficult,most of the loopholes in the management of construction industry,financial industry,real estate industry,life service industry is huge" the problem of replacing business tax with value-added tax(VAT)pilot expansion stage facing.How to solve the problem in the reform and make the operation smooth,is the most important thing at the moment and will be studied in this paper.Taxation is a major form in which the state obtains its fiscal revenue by means of political power,in accordance with the provisions of laws and regulations,through compulsory and free participation in the distribution and redistribution of national income and social products through taxation tools.Tax as the main form of fiscal revenue,the government from the process of social reproduction to obtain the necessary elements of resources,and then perform an important means of public service functions.In this paper,it also will be studied of the effectiveness of the pilot work of replacing business tax with Value Added Tax(VAT)and how the pilot work to replace business tax with Value Added Tax(VAT)worked in last three years.And it also will be discussed the problem grown by operation of the pilot work to replace business tax with Value Added Tax(VAT).It also will afford some examples of the problem in the pilot work of replacing business tax with Value Added Tax(VAT),to prove the opinion of this paper.Then in the paper it will try to offer operation suggestions and opinions,expect to improve the Value Added Tax(VAT)system,reduce double taxation,improve the Value Added Tax(VAT)chain,ensure the smooth operation of the tax,simplificate and adjust in tax rate,get the tax reduction goals,promote Chinese economic growth,promote value-added tax legislation and improve and upgrade the industrial structure of China.