Analysis Of The Economic Effects Of VAT Transition In Our Country And Effects On Economy Of Jiangsu Province

VAT as an important tax in our national tax system, it has very large influence to the financial revenue and the develop of state economy. In October, 2003, the central government decided to carry out the reformation from production value-added tax to consumption-oriented value-added tax. The Transition of VAT has become the important content in the new tax reformation.Our country has already carride on the Transition of VAT in some aeras,and gradually carried on in the whole country. This article is analysised in the foundation which the predecessor has researched, unify through the quantitative research and the qualitative research,first introduced the conception and the characteristic of VAT and descriped the necessity and the feasibility of the Transition of VAT. Next described the restricted factors of the Transition of VAT and analysied the economic effect which reformation will brought.Then introduced the concrete implement situation of Transition,hope to provide the successful experiences for the reformation in the whole country.Finally,analysis the influence which VAT transition will bring to the enterprises and local finance in JiangSu province.