On Legal Thinking Of Value-added Tax Reform In Shanghai

The reform of VAT in Shanghai is the objective need of the development of theeconomic situation in our country, but deepening the reform of value-added tax toachieve international standards still has a long way to go.This paper which is divided into four chapters is discussing as follow:In the first part of dissertation, the theoretical analysis of the merger ofvalue-added tax and business tax. Briefly introducing the concept,mechanism,characteristics and trend of development of VAT and business tax.In the second part of dissertation, the analysis of advantages and disadvantagesof mergers. there is much advantages in the merger of VAT, such as,to improveChina’s tax structure, to reduce the burden on taxpayers ’taxes，to improve the creditchain of integrity, To improve international competitiveness of export services. Thereis much disadvantages in the merger of VAT, such as, to increase tax burden of sometaxpayers, facing to reduce in revenue, to bring no-fair from regressive nature ofVAT.In the third part of dissertation, the comparison and reference of foreignlaw system of VAT. These principles of VAT can be summarized as follows:neutrality,efficiency,certainty and simplicity,effectiveness and fairness,flexibility.This pattern to deepen the reform of VAT provided profound enlightenment.In the last part of dissertation, the suggestions on perfecting the legislation of China’s VAT. To perfect legislation of China’s VAT giving the followingrecommendations: Hierarchy of legislation raising the VAT, Establishing comprehensive and full the scope of VAT(e.g).