The VAT system has undergone several changes since it was officially introduced into China in 1979. Due to the special deduction of VAT, it can be levied at any stage or at any stage of the production or circulation of goods or services. Therefore, compared with other taxes, it has several advantages like wide range of collection, and thus gradually becomes one of the most important taxes in China. After the 1994 tax reform, the VAT special invoice replaced the original VAT tax invoice and became the only legal certificate for VAT tax and deduction. Therefore, VAT special invoice is an important part of China's VAT management, and it is also the key to managing VAT.
South Korea has begun to implement the VAT tax system since 1977. Through more than 40 years of exploration and practice, Korea's VAT management has become more sophisticated and rigorous. In order to promote the healthy operation of VAT system, Korea implements a tax calculation system and implements a 'data management tax' around invoices. Based on the comparative analysis of the Korean tax calculation system, the advantages of the Korean tax calculation system and the characteristics of the Chinese economic system, this paper proposes several options for improving the management of China's VAT special invoices.
First of all, too many small-scale taxpayers in China have expanded the section of the deduction chain, which cannot truly reflect the fairness of value-added tax, and increase the difficulty of managing VAT invoices at the same time. Therefore, the government should reduce the size of small-scale taxpayers, and refer to South Korea's simple tax payment system, give small-scale taxpayers an input tax deduction at a certain rate. Secondly, the VAT special invoice as the deduction certificate makes it has the value of the general currency. Therefore, the illegal acts against the VAT special invoice are repeatedly prohibited. In this regard, China should strengthen legislation, clearly regulate the management and use of VAT special invoices, and increase penalties and establish a sound taxation guarantee mechanism. Thirdly, although China's taxation information construction has achieved some historical achievements, there are still some problems that restrict the development of taxation business and the improvement of work efficiency. China can refer to the useful experience of Korea's VAT return management, promote electronic invoice management, and realize the convenience of both tax authorities and taxpayer. Finally, in view of the low awareness of taxpayers in China, we should strengthen the publicity of tax law, raise the national taxation awareness, and further improve the popularization and depth of tax law.