Research On Transition Of VAT Currently In China

Introduce the main theories about VAT, analysis the pros and cons of three kind of VATtype, have built the theory base for the text. Our country set up a set of comparatively intactsystems in 1994, guaranteed the fiscal revenues of country increase fast, have brought aboutan advance in stability of economy. But with the constant international and domesticeconomic situations, the productive VAT that our country implements at present can't meetthe needs of economic development more and more, the transformation is possible andfeasible both in practice and in theory. We may enlarge the scope to agricultural products,transportation, building, installing, posting, communication and other fields of productiveactivity. October 2004, our country carry on the pilot project of the reform of VAT type'stransition in three provinces and one city in the northeast of China, for purpose ofaccumulating experience and exploring the route of the transition for national VAT reform.The present paper analyzes the influences from the transformation on all the aspects ofeconomy in our country, At the same time, based on different continents, the present paper givescomprehensive introductions on the types of VAT and practice of VAT of 100 countriesthroughout the world, which carry out the VAT system. With this foundation, the paper giveswidely international comparisons and draws lessons from the other countries' practice of VAT.This text fetches the method combined with qualitative analysis and quantitative analysis, suchprinciples as the fair efficiency studied according to the tax revenue, use methods and theories ofeconomics, drawing support from a large number of the concrete scheme making of the VATtype's transition of our country. First of all, introduce the main theories about VAT, analysis thepros and cons of three kind of VAT type, have built the theory base for the text. Secondly, analysisthe present situation of VAT of our country, have proved the necessity to transition of VAT fromproduction type to consumption type of our country. Thirdly, through the practice research of theVAT's transition of our country. Fourthly, make deep exploration and study to the array of reformenlargement of range of collection, sureness of the tax rate and treatment of fixed assets, and putforward the comparatively concrete scheme. Fifthly, through examples, analysis the influence ofVAT type's transition of our country, have proved further the positive effects to Chineseenterprises and China revenue of VAT type's transition of our country. Finally, still put forward therested scheme of VAT type's transition from five respects, strive to build a good environment forthe transition of VAT type, so as to ensure the smooth implementation of the VAT type's transitionof our country. Through the research on the transformation of VAT in our country of in presentpaper, the author hopes to offer some helpful advices on the transformation of VAT in our country.