Research On Their Impacts And Problems Of China's Current VAT Deduction Projects

At present,China is actively promoting the deepening reform of value-added tax,with the overall goal of reducing the distortion of tax system,giving full play to the advantages of neutral system,with the timely simplification of tax rate,research and further expansion of the scope of value-added tax deduction as the reform direction,so that the value-added tax after reform can better serve the economic development.In terms of the scope of VAT deduction,after "replacing business tax with value-added tax" in an all-round way,the scope of VAT deduction in China has been expanded to almost all the outsourcing costs,eliminating a large number of repeated taxation and reducing the tax burden.However,there are still some non deductible items,breaking the VAT deduction chain,and the problem of repeated taxation has not been completely solved.On the one hand,it will lead to unfair tax burden among industries and enterprises,which will have an impact on economic development;on the other hand,it deviates from the principle of value-added tax.Based on the principle of value-added tax and China's national conditions,this paper studies the deductible items that have not been included in the scope of valueadded tax deduction and their impact on economic and social development.In the specific content distribution,the first chapter is the introduction,which mainly introduces the research background and significance of this paper,and combs the related literature of the research on VAT deduction projects at home and abroad.The related literature research mainly focuses on the impact of VAT deduction and the change of VAT deduction scope on employment and other issues.In the second and third chapters,the author combs the development process of the scope of VAT deduction in China and the current regulations on VAT deduction projects in China,and analyzes the problems existing in the current VAT deduction projects in China based on the VAT principle,tax neutral theory,tax equity principle and other theoretical basis.Through the analysis,it is found that there are three problems in China's value-added tax deduction projects: no input tax deduction for labor cost,no input tax deduction for loan interest expenditure,and no input tax deduction for items that are difficult to distinguish between personal consumption and enterprise expenditure.In addition,the causes of the problems are analyzed,and it is concluded that there is a history and experience of no input tax deduction for labor cost The three problems are all restricted by the development of collection and management technology.The fourth chapter analyzes the social and economic impact of these problems,such as no input tax on labor cost,the use of labor relative tax burden on the use of machines,the change of employment mode of enterprises,according to the situation of labor employment in China,may bring unemployment;the input tax of loan interest expenditure cannot be deducted,which will increase the financing cost of enterprises;Input tax corresponding to items that are difficult to distinguish between personal consumption and enterprise expenditure shall not be deducted,which may not be conducive to the cultivation of a good sense of tax payment.Finally,based on China's national conditions,combined with the problems raised,the paper puts forward the ways to improve the current valueadded tax deduction project.In order to solve the problem of no input tax deduction for labor cost,this paper puts forward two deduction methods,i.e.the current agricultural product deduction method and the additional deduction method,as well as the way of taking the minimum living guarantee as the deduction amount.For the latter two problems,we mainly adopt the method of partial deduction,plus checking whether the input tax of the taxpayer conforms to the purpose of production and operation to determine the way of deduction.