Value Added Tax And The Implementation Of China Essay

1690 Words7 Pages
Capstone paper
Qiming Wang
9/11/2016
Value Added Tax and The Implementation in China

Brief history of value added tax
VAT was introduced in 1954 in France, being the invention on an engineer – Maurice Laure – who worked as a fiscal inspector, banking employee and as an employee of a big retailer. If at the beginning VAT was created and destined for big companies, from 1996, at the proposal of the Finance Minister, it begins to be applied also in the retail sector.
At the end of his career, the tax author remembered: “In 1952-1953 I had the occasion to conceive a reform regarding the turnover taxation, that I named VAT. Proposed in the Parliament by the Finance Minister, it was rejected. Despite the fact that I wasn’t the adept of the production taxation, because it stifled finally the investments, I defended until the end my idea, and, when Edgar Faure became Finance Minister, he proposed my tax be introduced in the Finance Law for 1954. After many political negotiations, VAT passed through the Parliament and was voted, but not without adventures !”
After the First World War, France had passed at the direct taxation on the expenses. In 1917 a proportional tax on the payers was introduced, and in 1920, this one was replaced with the tax on the total sales (turnover tax).
If between 1925-1936, unique taxes on type of products were applied (they reached 30 taxes), starting with 1937 the unique tax on the production and the unique tax on the services were introduced. From
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