Research On Expansion Of VAT Reform

This article mainly make research on our country currently VAT "expansion circumference" problems and countermeasures in the reform and development direction in the future.Since1994,the VAT system began to implement in China, as one of the main body tax, VAT tax revenue accounted for a quarter of the tax revenue in our country, and made a great contrabution to raising financial capital, the implementation of macroeconomic regulation and control in our country and promote the optimal allocation of resources, VAT is self-evident in the position in the overall tax system in our country. But with the development of China’s economic and market economic system increasing more and more perfect, in order to adapt to the needs of economic development, value-added tax system in our country has gone through several major changes. Starting from the overall development and reform of VAT, the VAT system in different stages of economic development in our country exposed to the defects of value-added tax system design and discomfort, and many times for this reform to make VAT system constantly adapt to the current stage of economic development. During more than30years of reform and opening-up, China value-added tax system has undergone significant transformation from production value-added tax to consumption-based value-added tax, the mentioned important to stimulate the economic development of China and promote role. Since consumption-based value-added tax system established in2009, from the specific implementation point of view, it is only part of the locality, however, with the rapid development of our economy and the diversification of management mode, the consumption VAT gradually exposed the shortcomings and began to gradually not conducive to the development of economy.VAT reform calls for then, VAT reform "expansion circumference" is the strongest voice for VAT reform era.On October26,2011,State council executive meeting made an important decision, in order to further solve the problem of double taxation in goods and services tax system, to make the current tax system more perfect, to support the development of modern service industry, beginning from January1,2012, in some areas and industries pilot work, deepen the reform of the VAT system will now impose business tax VAT industry instead of step by step, namely "expansion circumference" VAT reform."Expansion circumference" reform of the VAT is also expanding the scope of the current consumer VAT in our country, because the scope of the current consumer VAT covers only engaged in the sale of goods, processing, repairs and replacement services, and import of these areas, although after the transformation reform of value-added tax deducted purchases the input tax of fixed assets, to some extent, it can solve the problem of double taxation, stimulated the development of the investment in fixed assets, but because of its tax scope did not have substantial change, so the result has been to exclude the related producer services outside of the value-added tax system and levy business tax. As value-added tax levy scope is narrow, lead to that the VAT in the practice process generates a lot problems of economic and operation, such as artificial damage the deduction of VAT chain, causing the VAT deduction flatten and double taxation problem; Produce tax vacuum, VAT and business tax levied some problems in practice,such as crossover phenomenon is disadvantageous to the depth of development and upgrade of social division of labor and industries.Given the inherent problems of current consumption in value added tax system and the negative effects brought during China economic development, our country for VAT "enlarge" around the necessity and urgency of reform. Based on the content and structure arrangement mainly follow the combination of theory and practice, and combination of domestic and abroad, then relate and analyze this "expansion circumference" VAT reform theory research in China. Firstly, discuss the Related theories of the VAT detail, because solid theory is the guidance for practice, based on the theory of value-added tax,the policy of "expansion circumference" VAT reform theory is introduced; Secondly, for this major importance of VAT reform, specific analysis is necessary, from the value-added tax establishment in our country, it experiences several stages reform and the development of value added tax abroad for reference to illustrate historical inevitability of value-added tax reform in our country; Again, respectively, introduced China current expansion of VAT reform around the actual schedule and the specific implementation of the provinces; Finally, aiming at the problem in the expansion of VAT reform and take measures to put forward expansion circumference for VAT reform smoothly to provide the corresponding Suggestions and countermeasures, and referential Suggestions throughout the country.