Study On The Optimization Of China's Small-scale Taxpayer Legal System

Small-scale taxpayers refer to VAT taxpayers whose annual taxable sales are below the prescribed standards and whose accounting is not sound and cannot be submitted in accordance with regulations.Since the value-added tax has the characteristics of “levy on every link,tax is not re-levied”,the calculation of valueadded tax requires the taxpayer to strictly deduct the amount between the sales and the input in accordance with the amount recorded in the special invoice for value-added tax,achieving the purpose of controlling the tax.The accounting of small-scale taxpayers is not perfect,which increases the difficulty of the tax authorities in the process of collecting VAT from them,and is not conducive to the timely storage of national taxes.Therefore,due to the consideration of the principle of tax efficiency,China has established the small-scale taxpayer legal system,which applies a simple collection model to small-scale taxpayers.According to the small-scale taxpayer legal system,the value-added tax should be the product of sales and collection rate,and no special VAT invoices may be used for deductions.With the continuous advancement of the “reform of the VAT” in recent years,the small-scale taxpayer legal system is an important branch of the VAT legal system,and its own institutional optimization has become an important issue in the construction of taxation rule of law.Since 2018,with the fiscal and taxation [2018] No.33 as the starting point,China has taken the reform pace of the small-scale taxpayer system and raised the small-scale taxpayer standard to annual sales of 5 million yuan,which is the basis for unifying the industry and commerce.The scale of small-scale taxpayers has been further expanded,and more and more VAT taxpayers have been classified as small-scale taxpayers.On March 1,2019,the State Administration of Taxation issued a notice to expand the scope of small-scale taxpayers' self-opening VAT invoices to scientific research and technical services,residential services,repairs and other service industries.So far,there are eight industries.Small-scale taxpayers were included in the self-starting pilot.At the same time,the State Administration of Taxation announced that No.4 of 2019 also stipulated that the threshold for small-scale taxpayers should be raised to a monthly sales of 100,000 yuan,and the scope of tax exemption will be further expanded.It is based on the above policy background that the optimization of the small-scale taxpayer legal system has been given research value and research significance.On the one hand,there are still many problems in the small-scale taxpayer system.These problems will be further amplified after the large-scale expansion of small-scale taxpayer groups.If they cannot be properly solved,these problems will seriously affect the legality of the existence of the system itself.rationality.On the other hand,the reform of the small-scale taxpayer system since 2018 faces the question of whether it can be logically self-contained and whether it can be effectively linked with the general taxpayer system.These issues require argumentation of theory and practice.The first chapter of this paper studies the problems existing in the current legal system of small-scale taxpayers in China.First of all,in the process of applying the simple collection model,small-scale taxpayers still retain the repeated taxation factors of business tax.The value-added tax that has been paid in the previous link cannot be deducted in the next link,resulting in the VAT tax burden.Constant superposition on every link.Today,with the continuous progress of social division of labor,the different tax burdens borne by each transfer link will not be conducive to the professional development of various industries,and will not be conducive to the improvement of social and economic efficiency.Even though China has continuously reduced the rate of small-scale taxpayers in the past years,in order to minimize the impact of repeated taxation factors,the policy tone of retaining the simple taxation method for small-scale taxpayers determines that repeated taxation will inevitably remain inevitable.Second,the tax burden of small-scale taxpayers has not been effectively reduced.The tax burden of small-scale taxpayers is reflected in the rate of levy(currently 3%),and the tax rate of general taxpayers has been decreasing in recent years(the latest tax rates are 6%,9% and 13%).Small-scale taxpayers do not have a clear advantage over taxpayers in terms of tax burden.On the other hand,the scope of small-scale taxpayers who can issue VAT special invoices is still limited to eight pilot industries.Most small-scale taxpayers must apply to the tax authorities for special VAT invoices.The retention of this traditional billing model will not only increase the time cost of small-scale taxpayers,but also occupy its liquidity,which is not conducive to the expansion of business activities.Finally,the tax collection and management cost of small-scale taxpayers is higher than that of the average taxpayer.Based on the cost consideration of applying for a special VAT invoice for the tax authorities,many small-scale taxpayers choose to make the “invoicing company” open to VAT.Invoices,obtain VAT invoices at a lower cost and faster rate to maintain and expand their transactions with general taxpayers.The second chapter studies the logical starting point of optimizing the small-scale taxpayer system.Based on the existing problems of the small-scale taxpayer system proposed in the first chapter,this chapter aims to find out the theoretical basis for the emergence and development of the small-scale taxpayer system by combing the historical development of the system,and to clear the research starting point and research direction for the system optimization.The emergence and development of the small-scale taxpayer system is actually the result of the continuous game between the principle of tax equity and the principle of tax efficiency.Due to the sophistication of the VAT legal system,small-scale taxpayers who lack certain accounting conditions do not meet the requirements for VAT deduction,and barely applicable can only lead to low efficiency of tax collection and management.The small-scale taxpayer system is based on the need of tax collection and management efficiency.For some taxpayers whose accounting system is not perfect,the simple collection model is used to calculate the value-added tax.However,the simple collection model brings about the inconsistency between the small-scale taxpayers and the general taxpayers,resulting in unfair and non-neutral phenomena for small-scale taxpayers at the level of VAT.There are two views on this academic circle.One view is that the existence of the small-scale taxpayer system reflects the state's excessive intervention in the market,which is not conducive to the role of the market's own allocation.It should directly abolish the smallscale taxpayer system and completely eliminate the value-added tax.Repeated taxation factors.Another view is that the direct abolition of the small-scale taxpayer system will not be conducive to the application of most VAT taxpayers,and its tax compliance will be greatly reduced.The small-scale taxpayer system should be used as a necessary process in the VAT transition process.The transitional measures have alleviated the dislocation of SMEs due to the lack of accounting management level that is compatible with the VAT legal system.The third chapter studies the path of substantive law for the optimization of smallscale taxpayer system.The substantive law optimization path of the small-scale taxpayer system should solve the problem of repeated taxation and excessive taxation in the system itself.The premise of solving the above problems is to demonstrate the qualification of VAT taxpayers of small-scale taxpayers,so as to clarify the legitimacy and rationality of the small-scale taxpayer system.Taxation is a kind of debt relationship in public law.The state and taxpayers are two equal legal subjects.Therefore,the identification of the VAT subject qualification of small-scale taxpayers can refer to the relevant rules of civil subject qualification in civil law,even if it is small.The unsound financial accounting system of scale taxpayers has led to restrictions on their taxation ability,but they still have the legal requirements for VAT taxpayers.The VAT legal system established around small-scale taxpayers has a suitable legal soil.At the same time,it is necessary to have certain objective conditions for optimizing the small-scale taxpayer system from the substantive law.The choice of the substantive law optimization path must be based on the compensation of the basic system,such as the setting of the threshold,the invoice “warning line”.Break and so on.Based on the investigation of theory and practice,China's substantive law optimization measures for the small-scale taxpayer system can be studied from the gradual application of the deduction system and the further reduction of tax burden.The fourth chapter studies the procedural path of small-scale taxpayer system optimization.China's small-scale taxpayers do not have the accounting ability of general taxpayers,and their account book setting requirements are relatively loose,and China's current standards for small-scale taxpayers make most VAT taxpayers classified as small-scale taxpayers.The scope,which leads to the tax authorities' difficulty in tax collection and management of small-scale taxpayers.Therefore,China's procedural law optimization path for small-scale taxpayers should aim to improve the tax compliance of small-scale taxpayer groups,impose mandatory accounting on small-scale taxpayers,and strictly regulate their use of accounting accounts for VAT payment.On this basis,improve the tax agency system for China,and clarify the legal level,scope of application and organization of the tax agency system.