International Comparison Of VAT Tax System

The financial industry is the core of China's modern economic development.It is related to the economic development of a country and the stability of society.It plays an important role in economic trade and macroeconomic regulation.The optimization and improvement of the taxation system of the financial industry is the prerequisite for promoting the healthy and rapid development of a country's financial industry.In 2016,China's financial services were fully levied on value-added tax.In addition to the express exempted items,other financial services were divided into four sub-headings,and VAT was levied according to lower tax rates or simple taxation methods.Value-added tax is an international main tax type.In China,value-added tax is the most closely related to production and circulation.In the process of continuing to promote the development of China's economy,it is an inevitable requirement for China to regulate economic development through the taxation system and policy design of value-added tax to provide a good tax environment for economic development.In view of the importance of financial industry value-added tax to China's future development,this paper mainly analyzes the difference between China's financial industry VAT tax system and international financial industry VAT tax system from the perspective of VAT tax system elements,and then proposes to improve China's financial industry VAT system.Based on the analysis of the taxation theory related to the financial industry,the article explains the current situation of China's financial industry and the current financial industry VAT system,and summarizes the problems and challenges that China's financial industry VAT system may still face.Then,from the perspective of the VAT tax system,the countries analyze the value-added tax policies of the financial industry,and compare and analyze the taxation methods and input deduction rules of the core business of the financial industry.Finally,the overall challenges from the current development of China's tax system and international In contrast,the proposal for the value-added tax of China's financial industry is put forward.This paper aims to analyze the process of VAT tax system in China's financial industry,draw on the advanced experience of the international financial industry to levy value-added tax,and propose a VAT taxation model suitable for the future development of China's financial industry,in order to improve the financial industry VAT system.For reference,this is also the research value of this article.