Research On Theapplication Of Tax Neutral Principle In China's ValueAdded Tax Legislation

On October 30,2013,in the 12th National People's Congress Standing Committee's legislative plan,VAT legislation was once again explicitly included.It is expected that the construction of the VAT Law will be gradually carried out after the completion of the reform of "VAT Reform and Increase".In March 2016,the Ministry of Finance and the State Administration of Taxation issued the "Notice on the Comprehensive Promotion of the Pilot Reform of Business Tax to VAT" to launch the"VAT Reform Increase" pilot nationwide.With the continuous deepening of China's value-added tax reform,a more standardized system is needed.Therefore,on November 27,2019,the Ministry of Finance and the State Administration of Taxation jointly issued the "VAT Law of the People's Republic of China(Consultation Draft)"(hereinafter referred to as the "Consultation Draft").The promulgation of the"Consultation Draft" marks the leap-forward progress of China's value-added tax.The value-added tax system will appear in the public's field of vision in the form of legislation.Throughout the 40 years of development of value-added tax,the importance of tax neutrality has become more and more obvious.The production-type value-added tax has been changed to consumption-type value-added tax,the reform of VAT expansion and the cancellation of business tax are all outstanding performances.However,in the process of China's value-added tax legislation,most of them focus on the improvement of specific systems,and lack the principle research of system construction.How to give full play to the real effect of tax neutrality in the process of advancing VAT legislation is the direction studied in this article.The author divides the thesis into five major parts,respectively expounding the overview of the tax-neutral principle,the theoretical basis of the tax-neutral principle,the interactive study of the tax-neutral principle and China's value-added tax system,and the role of the tax-neutral principle in China's value-added tax legislation And the establishment of China's VAT legal system under the guidance of the principle of tax neutrality.Focusing on the tax-neutral principle,the concept definition of the tax-neutral principle,the comparison between the tax-neutral principle and related concepts,and the theoretical basis of the tax-neutral principle are analyzed to fully understand the tax-neutral principle.Sort out the gradual integration process of the tax neutral principle and China's value-added tax system,and find out where the tax neutral principle deviates from China's current value-added tax system.Finally,the role of the tax-neutral principle in China's value-added tax legislation is clarified,and under the guidance of the tax-neutral principle,specific suggestions for the construction of China's value-added tax legal system are proposed.