Research On The Factors Affecting Value-Added Tax Compliance In China

The research on value-added tax compliance, especially the tax noncompliance of value-added tax evasion is the critical issue to the government departments around the world. In our country, the VAT tax evasion is complicated. It causes the large loss of tax revenue, restricts the country’s economic functions, influences the role of state macro-control. Through theoretical models and empirical investigation, this paper attempts to explore the influencing factors of value added tax evasion, and then provide countermeasures for management of VAT tax evasion. The important results in this study are as follows:1.To build the VAT tax evasion model, carry out the influencing factors of VAT tax evasion on the preliminary exploration.The model covers these influencing factors:audit level, audit rate, penalty rate, sales revenue, etc. Some conclusions can be obtained from this theoretical model: ￤hen the punishment is large, the audit level and audit rate is negatively correlated with the VAT tax evasion. When the punishment is low, the influence of these two factors on the tax evasion is uncertain.②When the tax authority has a certain level of audit, the penalty rate is negatively correlated with the VAT tax evasion. When the audit level is very low, and even penalty rate is high, the punishment deterrent effect is not obvious, and the influence on tax evasion is uncertain.2.To carry on a empirical analysis for VAT tax evasion through a questionnaire. The empirical analysis adopts SPSS statistical software package, using the functions of frequency analysis, correlation analysis, contingency table analysis to analyze VAT tax evasion. It also investigates the influences of audit level, audit rate, penalty rate, reward policy on the VAT tax evasion. The empirical analysis and the theoretical model analysis are consistent to some extent.In this paper, according to the current status of the VAT tax evasion in our country and the theoretical model and empirical analysis, on the basis of international experience, we put forward certain countermeasures for management of VAT tax evasion:First, strengthen the level of value-added tax management. The tax authorities need to improve the audit level, strengthen the punishment mechanism to deter the tax noncompliance behavior and effectively reduce the VAT tax evasion.Second, enhance the administration of the special invoices for value-added tax. The tax authorities should attach importance to the supervision and implementation of the special VAT invoices, ensure the VAT taxpayers to pay their tax in full, put an end to the abuse of of value-added tax invoices from the source, reduce the tax loss.Third, establish VAT taxpayers credit rating system to make a use of incentive mechanism. Tax authorities should raise the understanding, strengthen leadership, consolidate the construction of value-added tax credit system to decrease the tax noncompliance of VAT tax evasion.Finally, deepen the VAT tax source management and set up tax assessment system. These are. important and effective measures which can prevent VAT tax evasion and improve the degree of value-added tax compliance.