On one hand,production type of VAT poses repetitive taxation and inhibition of investment,on the other hand it leads to many problems during the operation of VAT system,such as narrowing the tax range of VAT,the interference from the allocating of taxpayers.

Discussion on the change from production value-added tax to consumption value-added tax;

With the further development of technology and economy,production value-added tax has become a obstacle to the expansion o f enterprises and renewal of equipment.

According to the difference of tax base width, Value-added tax (VAT) has three types: production value-added tax, revenue value-added tax and consumption value-added tax.

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.

Consumptive value-added tax has many obvious advantages comparing with productive value-added tax,so that we should realize the change of value-added tax as soon as possible.

Abstract: By describing the theoretically value-added amount, the author illustrates therespective characteristics of consumptive, income and productive value-added taxes.

Since July 2004,reform experiment transferring production added-value tax to consumption value-added tax in northeast,central section and other places of China has gotten obvious effect.