Study On The Problems Existing In China’s Value-added Tax Collection Policy

Value added tax(VAT)is a turnover tax levied on the value added.VAT is also the most widely levied and largest tax in China.By 2018,VAT accounted for more than40% of China’s tax revenue.Recently,China’s VAT collection policy has been adjusted more times.At the end of the first quarter of 2016,China’s business tax officially separated from China’s tax system,and value-added tax,as the successor of business tax,became the "top seat" of China’s turnover tax.In 2018,China adjusted the VAT rate to 16 percent(base rate)and10 percent(preferential rate).In 2019,China reduced the VALUE-ADDED tax of 16%(base rate)and 10%(preferential rate)to 13%(base rate)and 9%(preferential rate),and the scope of input tax deduction was broadened to allow the purchase of passenger transport business to carry out input tax deduction.In recent years,the number of changes in VAT collection policy has some problems,which will not only affect the normal VAT collection,reduce fiscal revenue,but also increase the cost of collection and management.After research,it is found that the main problems in China’s VAT policy are as follows :1.Unreasonable provisions of taxpayers in the VAT collection policy;2.Unreasonable tax rate setting in the VAT policy;3.There are many tax exemption policies in THE VAT collection policy,thus affecting the deduction chain.In view of the problems found,this paper analyzes the causes and puts forward suggestions to solve them in combination with the basic national conditions of socialism with Chinese characteristics and advanced experience of VAT management in various countries in the world.This study is helpful for the government to standardize the VAT collection policy,improve the collection efficiency,reduce the collection cost,improve the fiscal revenue,and is conducive to the sustainable development of Our country.