Optimization Analysis Of VAT Threshold Adjustment

The main tax in our country’s turnover tax--value added tax is very important to our country’s economy,trade and government finance.So far,China has gone through four VAT threshold adjustments.With the biggest increase in 2019,the threshold of monthly sales rose from 30,000 to 100,000 yuan.The applicable scope of the threshold is for small-scale taxpayers,which is a major tax preference for micro businesses,especially individual businesses.In addition,VAT threshold adjustments theories mainly weigh the tax revenue and the cost of levy.VAT threshold adjustments raised its evolution from four aspects: development of the real economy,reduction of the corporate tax burden,tax saving cost and consideration of the inflation.In future,our country’s threshold rose should comply with the principle of tax fairness,efficiency,and neutral,do value-added tax threshold adjustment of rationalization.VAT threshold for 2019 years,through the data mining analysis found that the level of economic development,micro enterprise tax burden,tax cost and the financial revenue and expenditure together contribute to the VAT threshold increases.Through "twelfth five-year" period of economic boom,a surge in business personnel and micro enterprise high taxes has a significant influence on VAT threshold increases.In order to explore the impact of the threshold increase on China’s economic sector after the implementation of 1 year,through the regression fitting of the main economic data,it can be estimated that the VAT threshold adjustments will provide tax incentives of 163.46 billion yuan and 6.207 million jobs.The favored enterprises can either expand production and operation,thus providing more jobs for the society,or reduce the probability of withdrawing from the market,thus reducing the number of unemployed people.Under the two channels,the amount of social employment that can be increased is conservatively estimated at 4.08 million.Taking small-scale retail taxpayers in Nanchang city as the research object,the relatively fixed cost expenses,such as wages,rent,utilities and miscellaneous--fees,were investigated and quantitatively included in the model.In addition,the corresponding minimum monthly sales income is obtained according to the three regions divided by Nanchang.It is found that the minimum monthly sales income of small-scale taxpayers in different regions of the same city is significantly different,while the minimum monthly sales income of value-added tax in Nanchang is estimated to be around 115,104.94 yuan according to the regional distribution.However,the comprehensive development level of each city in Jiangxi province is obviously differentiated,which is similar to the economic regional imbalance of Nanchang city.Compared with other provincial capitals,the economic level and the number of micro enterprises in Nanchang are at a medium level,and the analysis of the number of VAT threshold points in Nanchang has explanatory power in Jiangxi province and in the whole country.Drawing on the mature experience of the relevant threshold in Britain,Canada and Japan,the enlightenment to China is as follows: First,set the small-scale taxpayer levy rate flexibly according to different industries;Second,reduce the treatment differences among different types of taxpayers;Third,strengthen the construction of tax information and cultivate taxpayers’ awareness of paying tax.At the same time,considering China’s national conditions,according to the research conclusions mentioned above,the short-term Suggestions can be put forward as follows: First,the tax amount verification and publicity,tax policy popularization to eliminate information asymmetry;Second,the levy rate of different industries,the threshold of different regions to achieve tax fairness;Third,the establishment of the warning line and the standard line of the adjustment of the threshold of value-added tax makes the adjustment of the threshold reasonable.The long-term goals that can be proposed are: First,the standardization of tax procedure and the transparency of law enforcement process;second,change the VAT threshold to the exemption amount.