Research Of Goods Flow Control In Value Added Tax Administration

Since the reform of taxation system in 1994, the Value Added Tax (VAT) has become the main tax. It has become an important part and played a huge role both in the organization of government receipts, and in the regulation of the economy. While recognizing the progress of VAT, we also cannot ignore the problems in current tax administration. First of all, the separation of invoices and goods is serious, and the inconsistency between these two has become the main modus operandi of criminals, leading to the huge loss of tax. Secondly, the invoices, which act as a means of controlling the sources of tax authorities, has not played an enough role in the economy; since a comprehensive billing system has not been fully built. What's more, the set of the taxpayer books and accounting records is not standardized and authentic, which increase the difficulty of inspection and regulation. Finally, the tax authorities are not strong enough, and the collection technology is unsuited for the needs of the society. The existence of these problems limits the level of tax collection and the further improvement of the collection rates. It has become the main obstacle to the realization of the Twelfth Five-Year Plan.According to the referred situation, we come out the goods flow control as the resolution in this paper, studying the tax authorities how to manage it under the conditions of Information Management. We expect for the results of strengthening and improving tax administration, reducing risk and increase the value-added tax collection rate. The goods flow control is based on the circulation of goods in VAT, by using the sophisticated information technology and the extensive use of computers.It also takes full advantage of the information technology achievements in recent years. Centering on the taxpayers'inventory of goods, the goods flow control monitors the input-ouput of the goods through the record. It uses the relevance and identification of information to check and adjust the books. As to formulate the comprehensive billing system, return the true process of production and operation. Furthermore, we want to master the entire process from the original of VAT. The VAT goods flow control makes up for the lack of quantity and cost factors in tax calculation process, it spread the tax calculation from static results to the dynamic process monitoring, and it analyzes the rationality and authenticity of the management process from the perspective of the ending inventory. In a word, the VAT goods flow control is the right way to resolve the current collection problems, improve the collection efficiency and reduce the manage risk.