Study And Improve Our System Of Deductible VAT Input Tax

The introduction of value-added tax in1994ensures fiscal revenue, promoteseffective allocation of resources, alleviates the double imposition to a certain extent andmaintains tax neutrality. Therefore, value-added tax has been developing rapidly in ashort span of30years, becoming the biggest tax category in China, and with the currentprocess of replacing business tax with value-added, it have occupied more than half ofthe total tax revenue.At present, the purchase of tax deduction is adopted in China’s value-added tax, i.e.the payable value-added tax is calculated from this period the amount of input taxdeduction purchases of goods and services. This method is simple, so it was adopted bymany countries. But the purchase of tax deduction system has basic flaw, which is thecredit chain fracture problems, namely according to the theoretical principle andimplementation of value-added tax nature, the phenomenon of double imposition is stillserious. This on the one hand contrary to the nature of the value-added tax, and increasethe tax burden of enterprises on the other hand.This paper firstly tackled with nature, principle, system and collection ofvalue-added tax, to analysis the specific problems of the credit chain fracture in twotypes and six categories on the institutional side. Followed by a representative sample ofenterprises in research, in-depth analysis of excess tax burden of enterprise caused bythe purchase of tax deduction, and the far-reaching influence of value-added tax excessburden of enterprises. Finally discussed how to reinforced credit chain, such as throughthe value-added tax rate to determine a science and simplified mechanism to keep taxneutrality, to expand the scope of value-added tax deduction, the connotation ofpropulsion value-added tax chain extension; specification of value-added taxpreferential policies to guarantee credit chain integrity; establish a scientific collectionsystem, improve the administration ability. Through the improvement of thevalue-added tax system, try to bring the added-value tax advantages into full play andpromote the fairness of tax burden and economic growth.