ABSTRACT
This chapter mainly reveals the distribution issues involved by illustrating the issues related to the protection of the deduction right concerning the transition of VAT. It demonstrates the influence of the distribution right or power of relevant taxpayers or the state. Based on the diversity and hierarchy of the right to economic development, relevant legal protection is reflected at multiple levels. If legal protection is insufficient in a state, the power to issue currency and levy taxes would be interfered or violated by other states or individuals, and economic development would inevitably be negatively affected. The inconsistency in the application of the system, in turn, directly affects the fairness and the participation to the system and the protection of the distribution rights of taxpaying agents. The taxpaying agents’ rights to deduction receives the most attention because it directly involves the distribution of substantial rights and interests of both parties: the taxpayer and the tax administration.
