The realistic choice to replace business tax with VAT in China’s financial industry  

作　　者：Yang Bin Lin Xinda Hu Wenjun 

机构地区：[1]Department of Public Finance,Xiamen Univeristy,China

出　　处：《China Finance and Economic Review》2015年第4期3-22,共20页中国财政与经济研究（英文）

摘　　要：It has become a global problem to levy the standard value-added tax(VAT)on financial services.Due to the infeasibility of credit input VATs by invoice,it is infeasible to build a standard VAT system in this field.If the government has to levy VAT on financial services,a practical choice is to adopt an account book method,which is to levy the special tax base through the account book using a single-rate.Meanwhile,it is not allowed to credit input VATs in this method.This kind of VAT is in effect a business tax.Due to the government’s authorized monopoly,there is no so-called over-taxation in China’s financial sector.As a result,the reform of“Replacing Business Tax with VAT”in finance should proceed without changing the original tax burden.After having conducted abundant research and statistical analyses,as for the VAT rate,9%is advised.The original way of levying taxes on the full amount of value is suggested to supplant with a new means of levying taxes on added value,with a slightly raised tax ratio,to reduce the tax base.

关 键 词：replacing business tax with VAT financial services reform of tax system VAT 

分 类 号：R73[医药卫生—肿瘤]