Research on Indicators of Tax Assessment Based on VAT Invoice

Abstract

The method of deducting tax in value-added tax (VAT) is to indicate the tax in the invoice. VAT invoice is not only the important proof of taxpayer's economic activity, but also the legal proof of the seller's tax obligation and the buyer’s input tax deduct. Tax assessment refers to a management activity of tax authorities in order to identify the authenticity and legality of taxpayers' declaration. The purpose of this paper is to provide case-selected of tax assessment through the analysis of VAT invoices. Firstly, this paper analyzed the present situation of tax assessment, and pointed out that the man-machine combination method should be the main method of tax assessment in China. Secondly, five kinds assessment indicators were put forward based on VAT invoice. Finally, through the calculation of a large number of invoice data, the thresholds of all indicators were determined. Each indicator threshold provided the basis for the case-selected of tax assessment.