The Management Of VAT Risk For Commercial Enterprises In B District

Nowadays, the types of trading behavior are increasing and the regulation system of tax is improved as economic develops continuously. It is inevitable that enterprises will go against the tax law intentionally or unintentionally when dealing with tax items.Modifications of regulations on Value Added Tax have been promulgated within the recent years. Many comparative analysises between the new regulations and the old one are done to summarize the risk points in management. However, the enterprises usually didn’t realize their violation of tax laws without tax assessment or the tax inspection by the tax authorities when they had to face declaration of error correction or penalty for delaying payment.Firstly, this paper will classify the Value Added Tax risk for commercial enterprises in B District in their daily operation activities. It gathered a large number of data for analysis. It also comprehensive, comparison and summary the risks caused by tax compliance, tax-planning and the differences between taxes and accounting. These risks include not decelerating Value Added Tax on time, deduction of non-vat taxable items, discounting amount deducted from the Value Added Tax taxable sales, the use of false invoices and so on.Secondly, this paper also divides the factors that rise Value Added Tax risks into external factors and internal factors to put forward more preventive measure. External factors include long distance from the tax authorities and Agencies without Appropriate Qualifications. The internal factors include lucky psychology, poor communication with tax authorities, misunderstanding of tax policy, poor internal communication, Misunderstanding of Tax-planning, willful violation of the relevant laws and regulations and attempts to solve risk through relationship. What is more, long distance from the tax authorities is a unique factor.Finally, this paper will put forward countermeasures against VAT risk for commercial enterprises in A Distric according to the factors mentioned above. For example, they should keep the tax-planning flexible, establish tax policy database and strengthen the communication with the tax authority, such as taking good use of the easy tax system. It hope that the commercial enterprises in B District to take strict precautions against the Value Added Tax risks.