The Research On Degenerating The Rate And Tax Item Of Value Added Tax In China

“VAT instead of business tax” is an important reform part of fiscal and taxation system in our country.Its main function is to promote the perfection of value-added tax system,optimize our tax system and reduce the tax burden of enterprise turnover tax.When “VAT reform” came to end,the business tax will be out of the stage of history finally,China's sales of goods and services are levied VAT.However,the “VAT reform” process also brings some problems.For example,carrying out the VAT reform,implementing the industrial policy of supporting the service industry and reducing the tax burden,the current VAT basically follows the tax rate of the original business tax.Compared to the previous VAT,the tax rate has increased tworates.The VATis a "neutral" tax system,which means the tax should be dependenton the tax rate as little as possible.Under this circumstance,the value-added tax can be smooth and has no difference to the final consumer which will finally maintainsmall transaction distortions in the sale of intermediate goods and services.The “VAT reform” is not only to reduce “repeated taxation”,but also to maintain non-repetitive taxation.Multiple VAT rate cannot makes the "neutral" come true.Secondly,from the perspective of tax incentives,multiple VAT rate is actualtax incentives,so it should be limited by the corresponding space and time.Tax incentives are special tax requirements;they are relative to the basic elements of taxation.The basic elements of taxation include the tax rate,tax items and taxable objects,which stipulate the basic tax burden and taxation scope of specific taxes.Tax incentives as a special tax element should not break through the basic tax burden and taxation of the tax base.In the VAT reform,the preferential tax rate and the scope of application of tax items related to the service industry,and the service industry itself should be the scope of the application of the standard rate,and should apply the standard rate of service industry.Tax incentives are special tax requirements for the basic tax elements in the scope of taxation and basic tax burden on the breakthrough.This paper is divided into four chapters;the first chapter is the study of China's value-added tax rate of tax items,the first section sets the status quo,illustrates the relationship between tax rates and tax items.In the second section,the author analyzes the reasons for setting the tax rate in China.The main reasons are as follows: 1.To maintain the "excessive need for value-added tax reform",we basically set up the original business tax rate.2.To carry out our industrial policy,Service tax rate should make some concessions to create a separate set of preferential tax items.The third section sums up the characteristics of China's value-added tax rate setaccording to above reasons,with a strong national industrial policy mark,the legislation did not sort out the standard rate of VAT and preferential tax rate applicable,the new “two-rate” tax rate is characterized by the "universal" nature of the standard tax rate and the preferential tax rate,which is not consistent with the design of the VAT rate system.Section IV,the author theoretically clarifies the third section of the problem.Section V is mainly to sum up the above issues.The second chapter mainly analyzes the specific problems of the VAT.The first section mainly talksfrom angle of China's investment in the process of value-added tax reform under industrial policy.The policy needs to give tax concessions to the service sector.Section II mainly analyzes from the perspective of tax neutral theory.The implementation of multi-file tax rate is essentially an intervention in market transactions;China's recent "let the market play a decisive role" still reflects different concepts of governance.The third section mainly analyzes the problems of the tax items set up in the multi-file tax rateby the industry;the main reason is the division of the industry can not accurately identify the diversified development of modern service industry.In the fourth section,the paper analyzes the setting of preferential tax rate in China from the perspective of the nature of tax concessions,and analyzes the legitimacy of preferential tax rate in China.In the fifth section,this paper mainly talks from the basic elements of tax(tax rates,tax items)and other stability,universality,special tax elements of the restrictive which also include transitional characteristics of the relationship.The breakthrough of“VAT reform”are the set of the new preferential tax rate and the levels of tax burden on the basic tax function,the preferential tax rate as a tax concession is not controlled in the limited space and time.The third chapter mainly introduces other countries value-added tax rate design and analyzes other countries' design of the tax rate such as a single tax rate or a file standard rate plus a file preferential tax rate.Preferential tax rate is applicable to the improvement of basic living standards and the terminal taxable products and services.The fourth chapter is mainly on the simplification of China's value-added tax rate tax proposals.There are tax legislative advice on the proposals,some advice are adherence to the principle of taxation which suggest to maintain the universality and stability of tax rates,some suggest to improve tax incentives legislation and keep thecoordination of tax basic elements and special requirements and put forward the suggestions on the implementation of the path of the tax rate tax reduction,including the principle proposal and the specific proposal of the tax rate tax deduction.Establishing the tax recognition mechanism if the current tax rate setting cannot be changed temporarily.