Research on the Transition and Development of Value Added Tax Institution in China

Production Value Added Tax (VAT) played an important function in economy development, however, with the change of the economic situation,the current production VAT gradually becomes the shackles of the economic development and consumption VAT becomes the inevitable choice in the transition of VAT. Under the restriction of the current economy situation, the transition of VAT can not be completed in one time. It takes on three characteristics in the process of transition,namely government as the supply body, compulsorily, and gradually. The article finally points out that it is inevitable to transit from the production VAT to the consumption VAT.