Study on Existing Problems and Reform Paths of VAT System in China's Financial Industry

摘要

Since the Chinese government has started the tax reform of "the Change from Business Tax to Value-Added Tax" in 2012, how to levy the value-added tax in finance industry has become the focus of the industry. In order to protect the stability of tax base in financial industry after the implementation of "the Change from Business Tax to Value-Added Tax" and the smooth transition of reform, the policymaking department has maximally extend the tax policy and means of tax collection in the original business tax. However, China is one of the first countries in the world to impose VAT on the financial industry. With the complexity and innovation of financial industry itself, therefore, it is difficult to step in place to "the Change from Business Tax to Value-Added Tax". In order to maximize the neutral advantage of value-added tax, it is suggested that in the next reform, the scope of tax payment for value-added tax in financial industry be further adjusted, and the deduction chain of value-added tax be improved.