| In recent years,with the implementation of the policy on replacing business tax with value added tax(VAT)across the board on May 1,2016 and the adjustment of VAT tax rate on July 1,2017.May 1,2018 and April 1,2019,the VAT system in China has been further improved and the breaking of VAT deduction chain has also been solved to a certain extent.There are still two types of taxpayers in China,namely small-scale taxpayers and general taxpayers.The existence of small-scale taxpayers leads to the break of the input tax deduction chain of general taxpayers,seriously affecting the play of tax neutral effect and stimulating tax substitution effect.In the past,most of the studies on the deduction of input tax for general taxpayers were carried out from the perspective of degenerate tax rate and value-added tax expansion.The existence of small-scale taxpayers leading to the breaking in the VAT deduction chain,most scholars only analyze the problem,and do not propose effective solutions.In view of the insufficiency of the above research,this paper studies the insufficiency of input tax deduction of general taxpayers from the perspective of purchasing small-scale taxpayers’ taxable items by general taxpayers,based on relevant theories and policy practices,putting forward the proposal of "full deduction of differential taxation”and related supporting measures,making an empirical analysis of the effect of the proposed tax optimization measures.The core research questions of this paper are:how does the existence of small-scale taxpayers affect the input tax deduction of general taxpayers?In the background of the existence of small-scale taxpayers,how to solve the general taxpayer input tax deduction problem?This paper studies the impact of the existence of small-scale taxpayers on the input tax deduction of general taxpayers through the simulation analysis of the tax burden and final retail price in the process of commodity production and circulation.At the same time,based on the theory of tax neutrality and relevant experience at home and abroad,this paper try to put forward tax optimization measures.The results of this paper are as follows:(1)The existence of small-scale taxpayers not only leads to insufficient input tax deduction for general taxpayers,but also puts small-scale taxpayers in a disadvantageous competitive position in the market.(2)Our government has tried to take tax response measures to this problem.Although the government’s tax response measures have industry limitations and have not formed a perfect system,they still provide valuable experience for this paper to propose tax optimization measures.(3)Centered on the proposal of "full deduction of differential tax payment" and related supporting measures,the tax optimization measures not only solve the problem of insufficient deduction of input tax of general taxpayers effectively,but also meet the needs of reducing tax burden and revitalizing the real economy.This paper’s Innovations are as following:(1)Innovation of research perspective.From the perspective of purchasing small-scale taxpayer’s taxable items,this paper carries out tax burden simulation analysis,which opens a new perspective for the analysis of insufficient input tax deduction of general taxpayers.(2)Innovation of research content.Based on the theory of tax neutrality and relevant experience at home and abroad,the tax optimization measures opens up a new way to solve the problem of insufficient input tax deduction for general taxpayers.The contributions of this paper are as follows:(1)Theoretical level.The tax optimization measures proposed in this paper fill in the blank of relevant research on input tax deduction of small-scale taxpayers’ taxable items purchased by general taxpayers.Tax optimization measures have both theoretical basis and practical experience,providing a reference for the reform and improvement of VAT system.(2)Practical level.Tax optimization measures effectively reduce the tax burden of general taxpayers and improve the market competitiveness of small-scale taxpayers,in line with China’s current needs of tax reduction and revitalizing the real economy. |
