The Research Of VAT Expanding Scope Reform Of China

The turnover tax is the main body of China’s current tax system, and VAT is the main body of the turnover tax. China’s first large tax is VAT. VAT has played a pivotal role in eliminating of double taxation and in promoting the efficient allocation of resources and in raising state revenues. With the continuous development of China’s economy, the drawbacks of the VAT system are increasingly exposed. In2009, China completed a nationwide VAT from production-based to consumption-based. This indicates that further improvement of China’s VAT system, but there are still problems. China’s economic development has been the impact of the financial crisis, the decline in exports and domestic demand, the employment situation is grim. In this environment, vigorously develop the tertiary industry has a heavy role in China’s economic growth and ease the employment pressure. China in the industrial restructuring of the "12th Five-Year Plan period, the target is to accelerate the development of the service sector to form the two-way service sector and industrial pattern of stimulating economic growth should continue to improve the rate of service sector contribution to economic growth, expanding around VAT the reform will not only be able to improve our tax system, but also to promote the development of China’s tertiary industry. VAT expansion scope reform has become the focus of the next period tax reform.This paper first introduces the VAT spread around the reform of the background and significance, scholars at home and abroad on the VAT theoretical study, based on analysis of the current situation and existing problems of China’s value-added tax. VAT tax system in France, South Korea, the United Kingdom, Japan, Brazil, India and then from both developed and developing countries and learn from experience. And then analyzes the VAT spread scope the reform of the tax burden of related industries, as well as the non-pilot areas and downstream enterprises. On this basis, this article from the increased tax burden on industry, the tax rate is set to determine the value added, the central and local fiscal revenue allocation of jurisdiction between the national tax and local tax, tax collection and other aspects of VAT spread around the reform facing problems, and put forward the corresponding countermeasures.