The Research On The Influence Of The VAT Reformation On The Efficiency Of The Enterprise

January 1,2009, China officially implement the VAT reformation, that allows all parts of the country, all sectors deducted the full input tax payment of the newly purchased equipment in calculating the amount of tax. Full implementation of the consumption-type VAT could encourage the technological transformation of enterprises, reduce the tax burden, Increase the profits, and stimulate business investment will.Based on the comprehensive basis of previous studies, the essay compared the VAT policies in Northeast China and the VAT policies. Combined with Xingtai Iron and Steel Co.'s actual data, the essay particularly analyzed the impact of the VAT transformation on the corporate tax, profits and cash flow. Further the essay elaborated the impact of the VAT transformation on the business benefits. On this basis, the essay put forward several proposals for the enterprises making better use of new VAT policies to improve enterprise efficiency.