Study On The Problem Of China’s Business Tax Changes To Value Added Tax

As The Third Plenary Session of the eighteen being held, China has entered into anew phase called comprehensive reform. At the same time, China’s reform onreplacing business taxes with a value-added tax also enters into a new phase whichneeds carry out the spirit of18th Chinese communist party congress in order to achievea more comprehensive and deeper reform.In retrospect, from the beginning of the pilot reform in transportation industryand part of the modern service industry of Shanghai in2012, to nationally pilotreform in2013and the whole transportation industry included in the scope of reformin2014, China’s value added tax reform is well underway. Certainly, reform canmake a lot of achievements and achieve a certain effect. However, there must be someobstacle to the reform. As the reform unceasingly thorough, the problems are growing.Since China entered the period of comprehensive reform, how we can deepen thereform, solve the problems and finally form the pattern of value added tax is the finalpurpose of this paper.Firstly, this paper discusses the necessity of China’s business tax changes intovalue added tax. And it uncovers the meaning of the reform in theory and reality.Then by reviewing some periods and effects of the reform, this paper give out themain problems during the reform. Finally, by drawing lessons from foreign reform ofvalue added tax, the paper comes to conclusion about how to solve the problems ofthe reform and how to achieve a more comprehensive and deeper reform in thebackground of the nationally comprehensive reform in China.