Analysis On Taxation Administration Of Goods And Transportation Industry After China VAT Reform

In2011, the scheme of Value-added tax Reform, approved by the State Councilof China, was issued by the Ministry of Finance and the States Administration ofTaxation in collaboration. The pilot program of this reform was in Shanghai, and thetransportation industry and partly service industry in this pilot city were includedamong the first group of trials since the January1st,2012. Ever since then, the bigscale of tax reform regarding goods and labor has been initiated.The VAT tax reform targets eliminating double taxation, upgrading the internalindustrial structure, making up the loophole of the current financial and taxationsystems as well as increasing the efficiency of the domestic taxation administration.All these essential structural measures are claimed to conform to the internationalconventions and to fit in the economic development of Chinese market. The pilotprogram further reveals that the risks and corresponding difficulties of administratingGoods Transportation industry, however, are the highest among all the othersub-industries within the VAT reform because of its discretely distribution, mobilityand non-transparency. As a result, the efficient taxation methods targeting theseproblems have been regarded as the key issue after the VAT Reform by the StatesAdministration of Taxation in China.This dissertation starts with the introduction of the current situation of GoodsTransportation Industry in B Province. Then by investigation, the underlyingproblems of relating policies as well as taxation administration measures are analyzeddrown upon the field studies and the reference of relevant cases. Finally, the policyrecommendations are brought up regarding the accounting system, financial system,account-book keeping system, information system as well as the risk-preventionsystem in B province.