On Legislation Of Value-added Tax

In China, value-added tax (Referred to as VAT) is particularly prominent role inthe maintenance of economic stability and economic growth, and has become truly“first tax”. However, as the "first tax", collection and payment of VAT has been no"law" to follow, based on primarily known as the "Provisional Regulation" of theadministrative regulations. The Provisional Regulation has been temporary for18years, and its lower legal level is an indisputable fact that is bound to affect theapplicability of its priority and authority.At present, China’s VAT reform is in a state of non-legal support systems,although theorists and practitioners who are in seeking the best VAT legislation andcontent. Meanwhile, most are engaged in research or practical work of tax revenue,and the legislative content of the reform are mostly around the expanded value addedtax, taxpayers classified, tax rate arrangements and other specific content design.Few people from the macro-level VAT legislation, from a legal level discussed. Thisstudy is the idea of VAT legislation is not confined to the range of tax reform, andshould adopt a divergent type of thinking, from a legal point of view, not too muchemphasis on the complexity of VAT tax reform, but should look at the legal level toimprove levels of need, mainly to solve the VAT legislation in the four "W"questions, why should legislate (WHY), who legislates (WHO), what kind of methodbe established (WHAT), how to legislate (HOW).Chapter1of the paper on historical research of China’s VAT legislation,summed up VAT legislation has gone through three stages, the pilot, fullimplementation, reform and improvement. The process of evolution is the VATlegislation to constantly comply with economic development, VAT legislation andchange and improve the means of tax collection. VAT legislation mainly reflects thefollowing two characteristics. First, the performance of the sources of law is notstrictly legal, but administrative regulations formulated by the State Council, the evolution from the initial departmental rules. Second, although a number ofamendments on the VAT legislation, they are for the content of legislation. As aresult, there are a lot of questions, which are the impact of inherent thinking in thefirst study and the lack of theoretical issues. And those hinder the theoretical depthand practical practice.Chapter2of the paper on realistic analysis of China’s VAT legislation, fivedrawbacks are concluded, a low grade of legislation, unclear division of legislativeauthority, proliferation of enabling legislation, lack of transparency in the legislativeprocess and shortage of operability legislative technique. So, the status quo ofChina’s VAT legislation is inconsistent with the rule of law, contrary to statutorytaxation principle. The legislative level, the legislative authority, the legislativecontent, the legislative process or legislative technique, can not adapt to China’seconomic development. Measures need to be explored and improved.Chapter3of the paper describes the theory of VAT legislation. First of all, fourreasons of promotion on the legal level of VAT legislation is described, therequirement of "legislative law", the requirements of achievement on the rule of law,the requirements of statutory taxation principle and tax reform carried out accordingto the rule of law. Then, there have been objective conditions and subjectiveconditions. Objective conditions is mature VAT system, complete the VAT reformbegun in2009, the enterprise income tax law and the personal income tax lawpromulgated and world experiences in more than100countries. And consensus onnature, content, fundamental issues and characteristics of VAT should be subjectiveconditions.Chapter4of the paper introduces foreign VAT legislation and assesses it. Thecommon characteristics of VAT legislation are found by the use of comparativemethod. The common characteristics are subject to political, economic, institutionaland other factors, organic combination of centralization and decentralization, whichthe central legislative power is dominant, more clearly defined by law, scientific anddemocratic tax legislative process. With a comprehensive and serious view on VATlegislation and the specific experience in the other countries, there are benefits for improvement on China’s VAT legislation.Chapter5of the paper puts forward to the author’s views on improving China’sVAT legislation. To absorb and learn in a large number of advanced ideas andmethods of legislation, while practice based on China, China’s VAT legislationshould be established on four basic principles, stability, operability, forward-lookingand coordination. At the same time, specific recommendations are put forward toenhancement the law level, the clear legislative authority, legislative technicalrequirements, the legislative process design and improvement on the content oflegislation.VAT reform, expanding VAT, integration with the international community andso on, are very important. However, to achieve these goals is a necessaryprecondition for the first should be a "law" to follow. If there is a problem on the lawitself, even there is no law, it can only be a luxury to according to law or taxaccording to law. Therefore, the VAT legislation is a pressing issue. Although theVAT reform has long been a focus on study, most are around the tax reform and thespecific system design, while few critics from the "legislative" point of view ofresearch. So the author abandoned the inherent ideas,"tax on tax", based on theenhancement of the legal level on VAT legislation, to further improve the proposedVAT legislation glimpse opinion.