Research Of Chinese Consumption-based Value-added Tax System

On January 1,2009, China began the second reform of value-added tax system, which is the transition from production-based value-added tax to consumption-type VAT. It has opened a new chapter in China's Tax Reform. With reference to the experience of foreign consumption-type VAT, the paper recalls the formation and development of China's history of value-added tax, studies deeply China's current consumption-type VAT system, summarizes its characteristics, and analyzes its impact on our economy on the basis of some statistical data and mathematical methods. Then the following questions are proposed:the scope of VAT collection has not been expanded and the value-added tax and sales tax co-exist, which results in the lack of superiority of consumption-type VAT; only new equipment of general taxpayers is allowed to deduct VAT, which will lead to unfair tax burden between the various sectors and between the new business and old enterprises; tax exemption is applied to farm produce which agricultural producers produce on their own, which does not bring real benefit to the agricultural producers; The VAT rates of small-scale taxpayers decrease from 6% or 4% to 3%, but simple way of taxation is still used, which may reduce the tax burden of small-scale taxpayers, but does not change the state of the unfair tax burden. Finally, with knowledge of accounting and related practical experience, the authors put forward their own proposals:First,Expanding the VAT collection scope according to two steps;Second,Perfecting fixed assets value added tax policy; Third,Implementing the tax-free policy deducted for agricultural producers. Fourth, author cuts the proportion of small-scale taxpayers. Then, he uses the different policy for different small-scale taxpayers, and design a kind of quite simple deduction method based on the invoice.