The Research On Replacing Business Tax With Value Added Tax

As an important part of the sixth-round reform of tax revenue system started in 2001, replacing business tax with value-added tax (VAT) has combined business tax and VAT and unified the taxation circulation system in China, helping solve the problem of double taxation comprehensively. Besides, this will play an active and important role in accelerating the construction of more equitable, more efficient and simpler VAT system, further improving tax revenue system in our country and promoting healthy and coordinated development of national economy. The article is intended to make an empirical analysis of the policy effect of replacing business tax with VAT in the first 3 rounds by taking Shaanxi as an example. Also it is intended to study the existing problems of current replacement of business tax with VAT and optimization direction of tax policy through the analysis of tax burden of representative enterprises in the 4 major industries for which the policy of replacing business tax with VAT has been implemented in this round.The article mainly consists of five parts. Part I is intended to set forth background and meaning of the selected topic, research ideas and methods, main research content and organization as well as the innovation points. Also it includes the foreign economists'main views on tax revenue and related principles and typical views on replacing business tax with VAT, as well as domestic research results related to the replacement of business tax with VAT. Part II is intended to give a brief introduction to business tax system, VAT system, and characteristics and essential attributes of replacing business tax with VAT. Also it includes the introduction of current development trend of VAT in the world, investigation of tax system and VAT system in developed countries and a detailed analysis of their implications to China's replacement of business tax with VAT. Part III is intended to introduce the historical evolution of replacing business tax with VAT in our country, present the earliest practice of replacing business tax with VAT for oil and gas field enterprise in 2000, investigate the practices of replacing business tax with VAT in our country since 2012, make an empirical survey of the influence of pilot reform of replacing business tax with VAT in the first 3 rounds on enterprises' tax burden, the number of social economic subjects, fixed assets investment decision-making and tax revenue of non-experimental industries, and briefly introduce the general situation of replacing business tax with VAT in this round, tax burden of the 4 industries and existing problems. Part ? is intended to analyze the actual financial data and VAT declaration data of representative enterprises in the industries such as financial industry, construction industry, real estate industry and service industries, evaluation the influence of replacing business tax with VAT in this round on tax burden of representative enterprises, make an in-depth analysis of the factors that influence the tax burden of enterprises, and assess the future trend of enterprise's tax burden in detail. Part ? is intended to put forward advices on improving the policy of replacing business tax with VAT specifically.As for the improvement of policies of replacing business tax with VAT, it is recommended to reduce and optimize the tax rate, cancel the standard for classification of general and small-scale taxpayers, decrease tax preference policies for upstream and midstream of the industry chain, avoid double taxation and tax exemption for cross-border services, improve the VAT allocation system, and properly promote legislation on VAT to consolidate the reform achievements. As regards the enhancement of tax collection and management of the industries for which the policy of replacing business tax with VAT has been implemented, it is recommended to formulate national unified industrial management measures, unify the statement of national policy implementation, realize fine management of VAT through informatization and increase the number of staff in the national tax sectors. And as for precaution of noncompliance, it is recommended to formulate the comprehensive strategy of preventing abuse of policies and general anti-avoidance rules, make the information on assistance of tax to all tax authorities in China and strengthen the ability to prevent noncompliance through in-depth application of the data.