A brand-new concept, value-added tax represents the original tax on manufacturers, wholesalers and service providers.

Industry tax.

The establishment of value-added tax in France was not achieved overnight, but was explored in the practice of business tax reform.

Gradually produced in the process.

(1) The business tax levied in full according to the turnover before the establishment of French value-added tax is a kind of business tax with

There is a cumulative indirect tax, which is characterized by multi-link step taxation.

The so-called multi-link is

Refers to the goods from production to consumption, every sales link must be taxed; The so-called steps are

Refers to the overall tax rate of goods with the flow of goods (that is, the proportion of total tax revenue in each link to the turnover of goods)

The increase of transfer links is gradually increasing, the main reasons are as follows: first, multi-link taxation; Second, goods come from

From production to consumption, every sale through a link will be taxed.

Because the tax burden of business tax increases step by step with the increase of links, the goods are the same.

The tax burden varies with the number of production or circulation links.

The more links there are in production or circulation, the more taxes will be levied on commodities.

The heavier the burden; Instead, the tax burden will be lighter.

For example, the sales price of a commodity is 1000 yuan, and the business tax rate is 10%, so a factory is omnipotent.

The factory, from raw materials to finished products, is produced by our factory; Factory B is a professional factory, that is, purchasing parts and assembling finished products.

Parts price 500 yuan.

Business tax included in goods of a factory =1000×10% =100 yuan.

Business tax included in the goods of factory B =500 (pieces) × 10%+ 1000 (finished products) × 10%.

= 150 yuan

The main reason for the above situation lies in the tax system of multi-link full taxation of business tax.

Because in every one,

All links are taxed in full, which makes the turnover tax that has been levied on business tax in the previous link become heavy in the next link.

double taxation

(2) With the development of commodity economy, France has implemented this multi-link and step-by-step taxation of business tax.

There is a contradiction between characteristics and the requirements of economic development.

In this context, in order to solve the accumulation problem of business tax.

Due to the adverse effects of division of labor and economic development, France carried out some reforms on the business tax at that time.

(1) Change the business tax on industrial production links from the original multi-link collection to only the final products.

The production link is levied, and the business tax is not levied on the intermediate link of product production.

Although this reform has solved the intermediate link

The contradiction of double taxation has not fundamentally solved the problem of double taxation of business tax. On the contrary, it is made up of

Many new contradictions have arisen.

First of all, as producers of production and value creation, parts producers do not need to pay business tax.

However, the final producer of finished products has to pay business tax, which is the whole process of product production.

The sum of the original business tax payable at each stage has caused the sailor burden of parts producers and finished product producers.

Uneven.

Second, because the business tax is only levied on producers who produce finished products, a large number of parts producers will be

Excluding it from the scope of business tax collection makes the reformed business tax lose its universality.

Third, because the boundary between finished products and intermediate products is difficult to distinguish clearly, it brings to the collection and management of business tax.

There are many difficulties.

Fourth, because only the finished products in the last link are taxed, the income balance of the business tax organization is destroyed.

Cause * * * fiscal revenue loss of stability and balance.

In view of the above reasons, France made a profound reflection on this reform and finally realized that it was itself that created the camp.

The fundamental reason for the accumulation of business tax burden is not the multi-link taxation of business tax, but that business tax is based on business.

The sales of all links in the activity are taxed in full.

Therefore, on the basis of repeated research and demonstration, the business tax was carried out.

Further reform.

(2) Restore the multi-link business tax collection system, but allow taxpayers to make a living by deducting business tax.

Business tax paid on purchased goods consumed in the production of taxable products in the above links.

This reform not only keeps the enterprise

The advantages of multi-link taxation and balanced income organization also eliminate the disadvantages of double taxation.

This is the later increase.

The rudiment of value-added tax.

③65438-0954 France further raised the business tax and expanded the deduction after the previous reform.

The taxable scope is that all inputs or services in production and business activities have paid business tax.

Deduct it.

Due to the implementation of the tax deduction system, as far as one link is concerned, although the tax basis is still this one

All sales links, but all inputs paid in production and business activities are deducted.

If the applicable tax rate of the purchased goods or services is consistent with the tax rate of this link, the actual tax will be levied in this link.

The tax levied is exactly equivalent to the tax levied on the added value of production and business activities in this link.

So,

France calls the improved business tax value-added tax to show the difference with the old business tax.