Value-added tax is a turnover tax based on the value-added amount of goods (including taxable services) generated in the circulation process. From the tax principle, value-added tax is a turnover tax levied on the added value of many links such as commodity production, circulation and labor services or the added value of commodities. Extra-price tax is implemented, that is, it is borne by consumers, and tax is levied only if there is value added, and tax is not levied if there is no value added.
Value-added tax is a tax levied on the value-added of units and individuals who sell goods or provide processing, repair and replacement services and import goods. Value-added tax has become one of the most important taxes in China, accounting for more than 60% of all taxes in China, and it is the largest tax. Value-added tax is collected by the State Taxation Bureau, 75% of which comes from the central government and 25% from local governments. The import value-added tax is collected by the customs, and all the taxes are the central fiscal revenue.
In practice, it is difficult to accurately calculate the added value or additional value of commodities in the process of production and circulation. Therefore, China also adopts the method of tax deduction, which is a widely used method in the world. That is, according to the sales of goods or services, the sales tax is calculated at the prescribed tax rate, and then the value-added tax paid when obtaining goods or services is deducted, that is, the input tax, and the difference is the taxable amount of the value-added part. This calculation method embodies the principle of taxation according to value-added factors.
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Taxation refers to a normative form in which the state participates in the distribution of social products in a compulsory and unpaid way in order to provide public goods to the society and meet social needs, and obtains fiscal revenue. Taxation is a very important policy tool. Moreover, because many aspects of taxation affect our lives, tax research is a topic we often talk about throughout the book. In this part, we begin to study how taxes affect the economy.
Taxation is the most important form and source of national (government) finance. The essence of taxation is a special distribution relationship formed by the state to meet the needs of the public, rely on the strength of the public, participate in the distribution of national income in accordance with the standards and procedures prescribed by law, and forcibly obtain fiscal revenue. It embodies a specific distribution relationship between the state and taxpayers in the collection and distribution of tax benefits under a certain social system. Marx pointed out: 1. "Taxation is the economic foundation of government agencies, not anything else." 2. "The economic embodiment of a country's existence is to donate taxes". Engels pointed out: "In order to maintain this public power, citizens need to pay a fee-tax." /kloc-Holmes, an American judge in the 0 th and 9 th centuries, said: "Taxation is the price we pay for civilized society." All these show that taxation plays an important role in national economic life and social civilization.
In history, at the same time as the country came into being, there appeared finance to ensure the country to realize its functions. In the Xia Dynasty, the first slave country in ancient China, the earliest financial collection method was "paying tribute", that is, subjects presented items to the king. At that time, although I had to fulfill this obligation, but