The Analysis Of The Economic Impact Of VAT "Expansion Circumference" Reform

Just a few decades VAT system universally implemented all over the world, VAT reform has become a worldwide tax reform trend. Covering all aspects of production, circulation of goods and services is the world’s value-added tax reform trend, is also China’s value-added tax reform direction.This article on the reform of expanding the scope of VAT in China as the research object, from the international and domestic background, using the tax fair principle and tax neutral theory as the theoretical basis, value added tax in our country are analyzed with the method of comparative analysis and theoretical analysis the necessity of expanding the scope of VAT.VAT "expansion circumference" reform is not only to follow the world trend of value-added tax reform objective request, is also solve the VAT in our country is not complete and the inevitable choice of all sorts of problems. expanding the scope of VAT has great significance to solve the business tax and value-added tax law lead to serious problem of double taxation, promote the development of the mainly services of the third industry in our country, realize economic transformation in China. Based on Shanghai VAT "expansion circumference" reform practice in the past two years, I mainly adopt quantitative and qualitative method to analyze the economic effect of the reform of expanding the scope of VAT economic effect. And analyzes some problems exposed in the process of expanding the scope of VAT. Such as the tax rate Settings, general taxpayers and other issues are analyzed, and based on the experience of the foreign value-added tax reform, puts forward some Suggestions to solve these problems.The author believes that VAT "expansion circumference" reform show obvious effect of structural tax cuts. It is beneficial to reduce the tax burden on enterprises, stimulate investment and enhance the vitality of enterprises, promote economic growth. But in the short term, tax revenues also brought great pressure to our country finance. Without changing the current fiscal and taxation system, the local fiscal revenue will bring huge impact. Second, the reform eliminates the disorders of the tax system in the third industry development in our country. And effectively promoted the optimization and upgrading of industrial structure in our country. It will promote economic growth in China.