Optimization And Effects On Collection And Management Of VAT For Individual Transport Operators

Road freight industry is a basic form of logistics industry and individual transport operators are the main for road freight market. With depth implementation of the reform program to replace the business tax with a value-added tax in the logistics industry, the problem of individual transport operators issuing VAT invoice are becoming more prominent, which affects the normal development, transformation and upgrading of the industry.This paper analyzes the problem, its reasons and the influence about individual transport operators after implementation of the reform program to replace the business tax with a value-added tax. It is because road freight industry characteristics are not adapted to previous VAT invoice management system that, after implementation of the reform program to replace the business tax with a value-added tax, individual transport operators cannot provide VAT invoices to labor purchasers, causing serious consequences that normal order of production and management are disrupted, financial risk and tax risk for taxpayers are increased, tax loopholes are created and state tax revenue is lost.After summarizing of foreign VAT management experience on road freight industry and combining the actual conditions of China road freight industry, this paper proposes three measures to optimize the collection and management of VAT for individual transport operators. The first measure is to help tax authorities to verify the authenticity of service to issue VAT invoices by monitoring individual transport operations from road transport information platform and logistics park. The second, modeling on the acquisition invoice of agricultural products, is to issue VAT invoices by labor purchasers. The last one is to, regarding individual transport vehicles as taxpayers, have individual transport operators issued VAT invoices for themselves.The optimized measures have practical significance that taxpayers are guided to strengthen compliance with tax laws, tax policies are improved and tax loopholes are plugged.The impact of optimized measures about the collection and management of VAT for individual transport operators is calculated by input-output table in 2012, China Taxation Yearbook and China Statistical Yearbook. After comparing the tax changes, the result is positive for service providers, service recipients and state revenue.After implementation of optimized measures, the unit added value of tax burden on logistics industry decreases around 0.25%-0.64%.