Study On The Problems Of China Value Added Tax Accounting

Value Added Tax(VAT) as one of the dominant taxes in Chinese taxation system, itsaccounting for countries, companies and investors, creditors, etc all have very importantinfluence. However, due to the lack of specific measurement of VAT on enterprises relied onthe current invoice deduction method and accounting research, China’s value-added taxaccounting and information presentation has some problems. For example，When general VATtaxpayers who purchase goods will not be able to offset the input tax then included in theinventory cost, make its VAT amount to pay when buying into the inventory costs, lead to thedistortion of the accounting information. For the same business of different enterprises(small-scale taxpayer and the general taxpayer enterprises) and the same business (usuallyshould be purchasing business) of one enterprise, the VAT accounting methods is different,which cause the related information is not comparable. As specified in the tax law, deemedsales, nondeductible input tax should be included in the relative cost, the costs and expensesassociated with VAT projects scattered in various subsidiary ledger, VAT related accountingdata visibility is poor. The presentations of the VAT accounting information do not meet therequirements of clarity, and so on. The existence of these problems led to the neglect ofvalue-added tax accounting information in the financial statements, also gave rise to otherrelevant accounting information distortion. Not only unfavorable to the corporate investorsand creditors to make right investment decisions, but also not conducive to the supervisionand evaluation of government departments, public to the enterprise, which is deviated fromthe target of financial report. Therefore, as the expansion circumference in VAT tax, how tostraighten out VAT accounting theory in our country and how to regulate the accounting andinformation presentation of business related to VAT became China’s value-added taxaccounting problems to be solved.In this paper, taking the traditional norms of research methods, the author did thecomprehensive and in-depth study of the VAT accounting theory and specific accountingmethods and its presentation. In the thesis, first of all, the VAT accounting attribute,value-added tax accounting concept, target and value added tax accounting mode of accounting theories, such as problems were analyzed. Secondly from the current situation ofvalue-added tax accounting related, analyzed and summarized the related problems of China’svalue-added tax accounting. Again, points out that the key of VAT accounting problems is theaccounting and tax syncretism model, as well as lacking specific measurement of VAT ofenterprises. The author questioned the accounting methods called "VAT expense-treat" whichput forward by some other scholar, proposed that although it settled the incomparableproblem of accounting information, but did not rule out the tax impact on the recognition andmeasurement of accounting elements. Based on the above considerations suggest makeimprovement to the current value-added tax accounting method, And develop China’s theVAT accounting standards to improve the accounting system construction and standardizepractices...