Some Comments on Legislation of Value-added Tax

The legislation of value-added tax(VAT) will fill the gap in the legislation of turnover tax of the tax system in China.The questions emerged in the operation of VAT should be made clear.Based on reviewing the course of VAT reform,the author puts forward some problems in the implementation of VAT system,such as the unclear connotation of donation,the incorrect definition of the tax calculation method for taxable labor service when selling self-made products,the unreasonable tax credit system for agricultural products,the separation between taxation and tax credit in transportation industry,etc.Accordingly,four principles that should be followed by the legislation of VAT and the steps to enlarge the scoped of VAT are proposed.