Analysis of Economic Effects of VAT Transformation Reform
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With the current changes in the international economic environment and the deepening of domestic economic development and reform, especially after China's accession to the WTO, the systemic flaws of the production-type value-added tax not deducting input tax on fixed assets have also gradually emerged, increasing from production-oriented value-added. The transition from tax to consumption-type VAT has become the internationally and domestically recognized VAT reform direction. The value-added tax reform can be said to affect the whole body. The transformation will inevitably bring significant impacts on society, the economy, and the people's lives on many levels. In this year, China's economy has gone out of the trough and turned into a local overheating and economic structural strategy. Under the special background of the critical period of adjustment, and China is currently in a period in which all tax systems need to be reformed as a whole, the significant impact of VAT reform on all levels of society has forced us to make more thoughts and studies. This article analyzes the economic effects of the VAT transformation and reform.
Economic effects; VAT; Transformation reform