Study On The Optimization Of Chinese VAT Refund System

Value-added tax(VAT) is the biggest tax in China,which contributes most of the financial revenue for China.VAT has been implemented in China for more than ten years,but it has always been a multi-file tax rate.It carries forward the input tax exceeding the output tax of the current period to deduct the output tax of the next period,and does not refund the VAT credit left for enterprises at the end of the period.There is no doubt that this will accumulate a large amount of tax credits,which will make the company’s current cash flow smaller.In the current situation of no great changes in a century,China implements a proactive fiscal policy.The VAT refund system is a continuous attempt to improve the VAT system,a reflection of in-depth implementation of tax and fee reduction policies.For relevant enterprises,it is the carbon in the snow to get over the difficulties,and at the same time,it is also a stepping stone for the realization of China’s macro goals.Since the pilot implementation of the VAT refund system in 2011,it has been constantly adjusted,introduced and effectively implemented.However,a careful study and analysis found that the current refund system,the application conditions are still relatively strict restrictions,applicable to a limited number of enterprises,refund method is also much inconvenient,leading to the policy of the applicable enterprises to further narrow,not conducive to the policy effect and the realization of national macro policy.Especially the phenomenon of tax fraud and tax credit,which is a serious problem at present,has a great impact on tax fairness.Therefore,to consider the actual situation of our country,it is necessary to study leave refund system to perfect,to enterprise development,economic planning,social stability is of great significance.In accordance with the basic idea of "theoretical discussion → practical investigation",the first chapter is the introduction,including the background,significance and literature review.The second chapter is based on relevant concepts and theories to clarify the relationship between the VAT refund and the principle of tax neutrality,the principle of tax incentive,the theory of tax regulation,and the theory of compensation tax policy.The third chapter explains the development course of the VAT refund system according to the principle of time in terms of the implementation object,the implementation condition and so on.The fourth chapter mainly studies and explains the problems arising in the implementation of the VAT refund system from three aspects: system,industry and implementation,and explains the problems in detail by combining the questionnaire survey data,statistical data or cases.In particular,it highlights the complicated way of keeping the refund,the contradiction between the system of keeping the VAT refund system and other policies,the strict development,the narrow scope of the industry,the unclear division of the industry,the difficult operation of enterprises,the immature tax supervision technology and other problems,and uses the calculation problem of the input composition proportion of the purchased agricultural products to illustrate the complex problems of the way.The case of H enterprise is used to illustrate the contradiction between the VAT refund system and other policies;whether C company belongs to six industries is used to judge whether the VAT refund system is applicable is used to illustrate the difficulty of industry division;whether M company meets the requirement that the incremental tax credit is greater than zero for six consecutive months is used to illustrate the problem of strict restrictions.It is more intuitive and clear to explain the implementation of the VAT refund system by using K company,a pharmaceutical manufacturing enterprise,to defraud the tax credit.The fifth chapter states the advanced practice of France,Australia,Italy,summarize the foreign experience into the VAT refund system conditions,time,the implementation of supervision several levels of analysis and reference,finally combined with our actual legislation,law enforcement,supervision three aspects to give targeted suggestions.