Research On The Jurisdiction Of Value Added Tax In International Service Trade

Since 1960 s, the global trade service has skyrocketed with the structural transformation of the world economy and the process of economy globalization. The core competition has transformed into trade in service from trade in goods, the competence of trade service has become the assessment criteria of a country's economy. Facing this huge cake, countries demand tax jurisdiction, it's necessary to manage the cross border economy by taxing. However, a few countries overlook the issue of VAT jurisdiction, which is incompatible with the blossom of global trade service. There isn't any universal agreement or paradigm in cross border VAT jurisdiction, compared with the OECD for international income and the GATT for international goods tarde,global trade service lacks professional coordination. Due to each country's own taxation consideration, a few adopt the regular cross border taxation discipline in the trade service, which is banal and may lead to taxation conflict. Double taxation and tax erosion may happen under this circumstance, which is detrimental in building a new order of global economy and standard the global trade service. As for China, we only promulgated certain temporary and transitional clause. A system with foresight, comprehensiveness, and coherence is necessary if we wanna achieve something in the reform of VAT. Therefore we must study the issue of VAT jurisdiction. In this paper, the basic theory of cross border VAT jurisdiction was introduced, including the definition of cross border trade service and VAT jurisdiction. Then we analyzed this issue in the foreign field, such as in US, EU, OECD and UN, evaluation and assessment was made. Based on main discipline and model, specific recommendations of revolution were came up as conclusion of this paper. A model based on consumer was established according to legislation, taxation, international cooperation and etc. We hope to deepen the China's VAT reform,strengthen the coordination of cross border VAT jurisdiction, so that a better international economy system in trade service can be established.