Study On The Problems Of Substituting The VAT For Business Tax

VAT sales tax has important strategic significance on China’s tax reform and structural tax reduction. Currently, the State Department will incorporate rail transport and postal services business into tax reform, so far,"Substitute the VAT for Business Tax " has kicked off in the country. The reform will gradually bring a series of macro-level economic effects:the elimination of double taxation, effectively reduce the corporate tax burden; simplify the tax system, optimize the tax structure; promote industrial upgrading, boosting industrial division; changing the mode of economic growth, promote social and economic development. Because the magnitude of changes in different tax rates, tax levels in the industry are not the same reform, and even some of the industry’s tax burden "increased rather than decreased."Although the change has been promoting business growth in the whole country, but still has a lot of problems in the exploratory stage. This reform increase the lead to reduced local fiscal revenues, the impact of the tax system of the produce, the tax rate and tax incentives set to be further optimized; while causing human reconfigure the tax authorities," Substitute the VAT for Business Tax "system is not perfect, resulting in tax drain. According to the increased business process, the State Administration of Taxation and the region corresponding to the introduction of tax incentives and government support programs aimed at improving the business. In contrast to our country and abroad on the basis of the relevant tax system design, suggestions to improve the business change increasing.To improve the business changed to increase, the government needs to improve tax law system, make better tax advocacy, strengthen tax collection and management, coordination of central and local government tax revenue distribution, and expand the range of input tax deduction. This reform is the trend of China’s tax reform, companies should respond positively to the government’s call to do the preparatory work camp changed to increase:Staff training, familiar with the new tax environment; strengthen the VAT invoice management; do financial planning; make a clear role.