Small-scale Taxpayers Operating Strategy In The Current Vat Collection System

This paper investigates the effect of value-added tax on small-scale tax-payer by theory discussion and case studying.The results indicated that the value-added tax discrimination upon small-scale tax-payer is undoubtedly obvious and painful. The first, the value-added tax bearing rate of small-scale tax-payer is much more than that of value-added tax general tax-payer. The second, it is difficult for small-scale tax-payers to deal with value-added tax general tax-payers as that small-scale tax-payer can't provide the special-purpose invoices for value-added tax. Therefore, it is difficult for small-scale tax-payers to increase the sales amount as value-added tax general tax-payers are usually big buyers. The third, small-scale tax-payer has to pay the value-added tax twice if small-scale tax-payer import goods and sell. Finally, small-scale tax-payer has no the qualification to obtain the tax return from the government. The tax return from the government is usually of 17% of the value of the goods.The results from the present investigation suggest several measures for small-scale tax-payers to take. The first is that increasing the sales amount as much as possible to reach the line provised by the tax code. The second is to buy to a company with a qualification of value-added tax general tax-payer. The third for small-scale tax-payer to export goods is to establish a new company specialized in exporting goods which can apply for the qualification of general tax-payer. The forth is to dertermining carefully in collecting the goods to sell and collecting the aim customers. The customers who don't require the special-purpose invoices for VAT is preferable.