Brief analysis on value-added tax transformation and its influence on enterprises

From Jan. 1st, 2009, the value-added tax transformation will be performed in all industries around the country. Based on value-added tax types and retrospection of reform practices, this article analyzes the background of the national value-added tax transformation and points out the influence of full implementation of the value-added tax transformation on various enterprises.

Value-Added Tax （VAT） on Selected Financial Transactions

This paper deals with the approach to imposing value-added tax （VAT） on financial transactions. The VAT is a highly harmonized consumption tax within the European Union （EU）. VAT operational rules have been set down by the relevant directive of the Council of the EU. Under the directive, it is possible to select either exemption or taxation of financial transactions. Only the first option is permitted in the Czech Republic. Pros and cons of both models are described, in particular, the problems with determining the difference between financial transactions and other similar performance that must always be subject to tax. Potential lower VAT revenue or tax base assessment, as appropriate, seems to be crucial in the case of the taxation of financial transactions.

Interregional Value-Added Tax in the Era of E-Commerce: Tax Policy Design Based on Big Data from Online Retailing

The value-added tax(VAT)in China is levied and allocated based on the origin principle.Under the background of the increasing substitution of online retail for traditional offline retail,this mechanism will exacerbate the disparity of regional tax revenue,and intensify tax competition among local governments.Therefore,reconsidering the allocation mechanism of value-added tax in China can be an important policy decision,and it is influenced by various economic and social factors.Firstly,we utilize large-scale retail transaction data from an e-commerce platform to measure regional disparities in retail and consumption among different regions and then reveals present tax policy results in revenue imbalance in different regions.Secondly,we establish a model based on game theory to illustrate how the origin principle leads to fierce tax competition among regions.Furthermore,by establishing and solving tax allocation models between local governments and the central government,this study simulates and calculates the degree of revenue imbalance under different scenarios and attempts to propose policy measures.The results indicate that implementing the destination principle will reduce regional tax imbalances.Moreover,adjusting the allocation ratio between the central government and local governments based on city levels is advantageous for further reducing regional tax revenue disparities.

The Stagnant Export Upgrading in Northeast China:Evidence from Value-added Tax Reform

China's 2004 value-added tax(VAT)pilot reform in the Northeast region,which changed the VAT from production type to consumption type,introduced a sizable tax credit for fixed investment in manufacturing industries,leading to more investment and higher productivity at firm level.This paper,however,uses difference-in-difference estimation and finds a negative structural effect;that is,the VAT pilot reform leads to a reduction in the export sophistication of Northeast cities relative to other cities in China,and the results hold for a battery of robustness checks.It is found that resources are reallocated towards less-sophisticated industries.As the products with higher export sophistication are more skill and research and development(R&D)intensive,the shortfalls of skilled labor and R&D spending hinder the upgrading process.With a new round of revitalization plans in the Northeast,policymakers should be cautious with similar structural effects and focus on increasing skilled labor supply and R&D investment.

Value-Added Tax(VAT)Development and Reform History—A Study of VAT Evolution Around the World and in China

Value-added Tax(VAT),a turnover tax levied on the value appreciated in commodities production,circulation and sale,has been widely practiced by economies worldwide for its neutrality.From the international perspective,European Union VAT and New Zealand VAT stand out as characteristic models of VAT development and reform history.With changing economic development models and the growth of e-commerce businesses,VAT systems have been upgraded to meet taxation challenges brought about by the digital economy.Recently,VAT policies and measures have been introduced particularly to combat the COVID-19 impact.In China,the VAT system has been reformed constantly over the past 40 years and has been converging with international practice.China now needs to address emerging VAT issues through legislation,tax incentives,and tax-rate grades so as to meet challenges in VAT collection and management and to suit the“new normal”of economic development.

How International Tax Rules Adapt to the Development of the Digital Economy:The Perspective of the Republic of Azerbaijan

This article outlines the significance of the digital economy,highlighting the challenges to taxation,and introducing the focus of the article on Azerbaijan's perspective.In recent decades,the digital revolution has transformed the global economy,reshaping industries,business models,and consumer behavior at an unprecedented pace.This transformation,commonly referred to as the digital economy,encompasses a broad spectrum of activities ranging from e-commerce and digital services to data analytics and cloud computing.As the digital economy continues to expand its influence,traditional tax systems face significant challenges in adapting to this new reality.This has ignited discussions worldwide across various legal and regulatory domains,and international taxation is no exception.The tax consequences are extensive,impacting both direct and indirect taxation,broader tax policy matters,and tax administration.

浅谈营改增对企业的影响及企业的对策

为了改革与完善财税体制,促进产业结构升级,国家开始在全国部分行业中逐步开展营业税改征增值税改革。营改增政策给改革所处行业企业带来很大影响,这些影响既有积极影响,又有消极的影响。本文对营改增政策给企业带来的积极影响和消极影响进行分析,并提出一些对策。

Digitalization Practice in the Spanish Tax Agency

This article will address some digitalization projects that the Spanish Tax Agency is developing,most of them fully in-house,either for control or for assistance purposes.Firstly,the real-time VAT reporting system called SII,in place since July 2017,which has enabled a more timely and better control of VAT operations and at the same time has contributed to reducing the administrative burden on taxpayers.Secondly,the online tools progressively developed for assistance to VAT taxpayers,including the use of AI and the establishment of a new model of assistance through the ADIs,whole of digital assistance offices adding to the walk-in services in the local offices.Thirdly,the reporting obligation of intermediaries in the vacational rentals since year 2018 as a tool to boost voluntary compliance and improve the control of this sector,especially transactions where electronic platforms are involved;and last,but not least,the IT tool developed to hold virtual meetings between tax auditors and taxpayers called VIVIs,which will contribute to the efficiency of the Tax Agency and will also reduce the administrative burden on taxpayers.

VAT Neutrality and Corporate Cash Holdings—Based on the Research of Uncredited VAT Refund Policy

This paper regards the uncredited value-added tax(VAT)refund policy promulgated in 2018 as an exogenous shock to improve the neutrality for VAT.Based on the statistics of listed companies in the non-financial sectors from 2013 to 2020,this paper applies the difference-in-differences(DID)approach to study the impact of the uncredited VAT refund policy on corporate cash holdings.The study finds that the policy has eased the impact of non-tax-neutral impact of non-refundable tax credits and lowered the level of corporate cash holdings.Furthermore,the analysis of capital sources verified that the policy has optimized the corporate capital conditions.These findings have proved to be robust after a series of tests.At the level of cross-sectional differences,the uncredited VAT refund policy exerts both"resource effect"and"signal effect",enabling companies to reduce cash holdings in the dimensions of both tax endowment and market expectation.At the level of policy effects,the policy improved the corporate behavior of high cash holdings for the production and operation cycle,with more notable impact on enterprises with higher tax credit rating.At the level of economic consequences,the adjustment of corporate cash holdings induced by uncredited VAT refund policy has significantly improved operating performance and reduced performance volatility,with a greater impact on enterprises with high capital intensity.The research findings evaluate the uncredited VAT refund policy from the perspective of tax neutrality,laying a theoretical foundation for further optimizing the uncredited VAT refund policy and the modern fiscal,tax and financial systems.

An Inquiry into the Determinants of the Exports of China and India

Regression analysis is used to tease out the relative significance of influences on the supply and demand for the exports of China and India. On the supply side, the value-added tax in China has discouraged export supply. The elimination of the rebate on those taxes will discourage exports. Higher wages discourage exports, but the share of exports by foreign invested enterprise is a positive influence, as is a higher share of value added in output and greater experience in exporting. On the demand side, exports depend in part on aggregate income levels in importing countries. Relative wages have been more important than exchange rates in determining the demands for Chinese and Indian exports. This evidence does not support the pressures for a devaluation of the RMB. There is also evidence of the positive significance of the accustomization of purchasers to buying Chinese exports.

Value, Structure and Spatial Distribution of Interprovincial Trade in China

This study uses two different datasets to explore the stylized facts of interprovincial trade in China during the recent two decades. One dataset provides the magnitude of bilateral interprovincial goods trade calculated using firms ＇ value-added tax invoices. The other supplies estimates of interprovincial trade using provincial input-output tables. We find that China has both a large value and a high growth rate of interprovincial trade, but there still exists a home bias in internal trade for most provinces. In addition, disaggregation by product shows that the manufacturing sector has the largest share of interprovincial trade and this share continues to grow. Finally, the spatial distribution of trade suggests that all provinces can be clustered into a smaller number of trade areas with large intra-cluster trade. Therefore, China＇s central government should make more effort to reduce local protection, stimulate domestic demand and coordinate interregional trade among local jurisdictions.