The Research On The Legal Issues Of "VAT Reform"

After the approval of the state council,the ministry of finance and the state administration of taxation jointly made the decision to carry out a nationwide business tax reform on value-added tax,which is a pilot project of "replacing business tax with value-added tax"(VAT reform)since 2011.This is the largest and most far-reaching tax reform in China since the reform of the tax system in 1994.The reform carried out pilot in the transportation industry and modern service sectors in Shanghai since May 1,2012.The whole industry was pushed aside on May 1,2016.From 2012 to 2016,it went through four stages.At this point,the business tax,which used to be one of major taxes in China,has withdrawn from the historical stage."Replacing business tax with value-added tax(VAT)" thoroughly implement the requirements for tax reform on the third Plenary Session of the 18th CPC Central Committee,and it has positive effects on optimizing the tax structure,avoiding double taxation,implementing structural tax cuts and the structural reform of supply-side.But," replacing business tax with value-added tax " in law still exist many problems needed to be solved,because our country's long-standing "pilot" legislative model in the field of VAT,the lack of legislation,and the division of property and power between the central government and local governments is unclear.However,at present,most of the research on the refom is from the perspective of economics,and analyzes its economic role in macro-control,and a few from the view of law.In this paper,I will take the progress and the status quo of the reform as the starting point,and analyze the legal problems of the "VAT reform" and the distribution of property and power between the central and local governments based on the basic principles of the tax law.By perfecting laws,improving value-added tax legislation level,standardizing the procedures of value-added tax legislation,and establishing the financial transfer payment system,to establish a more perfect legal system to escort the reform so that the "VAT reform" will make a significant social effect.