Whether the tax rules on transactions of financial goods, which play an increasingly important role in the development of financial industry in China, are reasonable or not has an important impact on the good development of financial industry. Currently, among the abovementioned tax rules, the ones in the matter of VAT, which is the primary source of tax revenue, are most controversial and have attracted the most attention. From the perspective of equity, there are some imperfections in the current Chinese VAT rules on transactions of financial goods which simply transplanted the related rules of business tax and go against the requirements of the modernization reform of VAT. For example, the scope of taxable financial goods is unclear and incomplete, the tax item in which the financial goods are positioned is inaccurate, taxpayer for transactions of financial goods during the operation of capital management products is provided controversially, the rules on special taxation measures including tax exemption are imperfect, and the differential taxation method violates the core characteristic of VAT. In conformity with the structural arrangement of tax system, the principle of generality in taxation and the need for tax interests protection and macroeconomic regulation, the VAT rules should be modified as follows: Define the concept of financial goods according to the theory of VAT imposed on business activities and by highlighting the feature of negotiability in market; as regards the taxable items, place financial goods alongside merchandises and services, and introduce the special rules on the definition of sale of financial goods in China; consider the capital management product items as the taxpayers for transactions of financial goods during the operation of capital management products; abolish the general tax exemption for transactions of financial goods carried out by individuals, but raise the tax threshold and lower the levy rate, exempt the stock transactions for individuals from stamp duty when VAT is actually imposed on stock transactions carried out by them, and add the tax exemption treatment for transactions of financial goods with public interests, as well as applying a higher tax rate to high-frequency transactions; apply in principle the ordinary taxation method for transactions of financial goods. However, some VAT rules, such as the application of ordinary tax methods in some transactions of financial goods such as stocks and the application of tax rebate, need to be perfected gradually.