Abstract: For a long time, under the dominant tax system with the principle of place of production, the sharing of China's value-added tax (VAT) among local governments shows the characteristics of reverse distribution. After the reform of replacing the business tax with VAT, although the longitudinal share proportion of VAT revenue among the local governments has increased, the uneven horizontal sharing problems still exist. And in the present context of retaining to offset against tax payable, the mismatch between the revenue sharing and tax refund liability of the local governments once again highlights this problem. In order to promote the balanced revenue development among local governments, China has partly relieved the imbalance contradiction between regional income and distribution by means of the adjusting mechanism of the local sharing of retaining to offset against the tax payable, however, there still exist some problems, such as the narrow adjustment scope, the unscientific setting of the proportion, the implementation efficiency to be improved, etc.. In the new era, to resolve the uneven sharing problem among the VAT revenue regions, it is necessary to set the goal of public services equalization under the guidance of benefit principle, insist on the principles of tax source contribution, tax burden attribution, and cost-profit matching, and rationally distribute the income among the regions. Meanwhile, we should combine the factors of consumer spending and the number of residents to promote the weighted allocation of VAT revenue among the regions, strengthen the construction of local tax systems and improve the fiscal transfer payment system by establishing the special financial regulation fund for the retaining to offset against tax payable, so as to effectively relieve the unbalancing contradictions of VAT revenue sharing among the regions.

Key words: value-added tax revenue, regional sharing balance, retaining to offset against tax payable, principle of place of production, principle of place of consumption