Characteristics of value-added tax

The main characteristics of value-added tax:

1, no double taxation, with the characteristics of neutral taxation. The so-called neutral tax means that tax has no influence on economic behavior, including enterprise production decision-making and production organization form, and the market plays a basic and leading role in resource allocation. When the government establishes the tax system, it is based on the principle of not interfering with the investment decision of operators and the consumption choice of consumers.

2, step by step tax, step by step tax deduction, and ultimately all taxes are the responsibility of consumers. Value-added tax, as a new type of turnover tax, retains the characteristics of traditional indirect tax, and is based on the total turnover, taxed by the way, and also implemented a tax deduction system. That is, at the same time of step-by-step taxation, tax deduction is also being implemented step by step.

3. The tax base is broad, with universality and continuity of collection. From the perspective of the horizontal relationship between production and operation, regardless of industrial, commercial or labor activities, as long as there is value-added income, it is necessary to pay taxes; Judging from the vertical relationship between production and operation, no matter how many production and operation links each commodity goes through, it should be taxed according to the value-added amount of each link.