Vat Accounting Issues In China Study

Valued added tax is a kind of tax which is charged on the basis of value added services on the various links in goods production and circulation. VAT can be categoried into production of value-added tax, income tax and consumption tax. Value-added tax is applied since 1994, and achieved good results, which guaranteeing rapid growth of fiscal revenue. after years of practical application and modification, VAT tax law realize the standardization, rationalization and scientific gradually. At the same time, accounting theory and methods of research has also made many significant results. However, despite the VAT tax law and accounting reform made progress so fast, the contradictions between them is inevitable. Since the objective of VAT tax and accounting objectives varied, it will inevitably lead to a treatment difference involving value-added tax in the business, accounting and tax laws in the value-added tax revenue recognition, and input tax deductions for handling, on processing time, thus value-added tax accounting came into being. VAT accounting is a specific accoounting which supplies accounting information to corporate stakeholders and follow fair, impartial, neutral principle of taxation in VAT tax-related business recognition, measurement, recording, reporting actions. China's current value-added tax accounting status quo is the "Interim Regulations decide the supplementary regulationg, supplementary regulations standardize the accounting behavior",which is not consistent with China's current "Accounting Standard accounting practices" .This has also brought a series of problems, For example, the accounting treatment failed to keep pace with changes in tax law, undermined the actual cost accounting principles and the principle of comparability of information and so on. Therefore, the objective of this paper is that through analyzing existing problems in China's value-added tax accounting so as to strengthen the value-added tax collection, and improve the quality of accounting information of value-added tax.In this paper, using method combining of the comparative analysis and empirical analysis of the basic theory of the value-added tax and financial accounting theory, with large number of empirical data,the author analizes in-depth on China's value-added tax accounting issue. First, introduced valued-added tax theory, which mainly analyzed the pros and cons of three types of value-added tax, thus foreshadowing for the full text. Secondly, expounded China's value-added tax accounting theory whose theoretical basis is value-added tax VAT accounting basic theory and basic financial accounting theory. And accounting theory of China's value-added tax should be the basic theory of value-added tax accounting and tax accounting applications theories. Thirdly, by comparing China's existing laws and regulations and accounting standards VAT system,analizing differences in purchase of the value-added tax and in sales, permanent differences and timing differences, as well as specific differences,which provides a basis for the building of China's "financial and taxation streaming" VAT accounting model. Then, according to a large number of empirical data on China's current value-added tax accounting, this paper analizes existing problem in detail in VAT accounting issues from angle of the accounting recognition and measurement of value-added tax, VAT accounting records, tax aspects of the quality of accounting information and unfair tax burden . On this basis proposing cause of the problem from two sides, namely the current "fiscal and taxation unity" VAT accounting model, and the second is the existing tax system itself is far from perfect. Finally, in light of China's current actual situation in China ,this paper proposes the value-added tax accounting idea of construction of diversion of VAT and taxation accounting model, set up concept of value-added tax "cost" and issue value-added tax accounting standards to improve tax and accounting system and China's value-added tax system.