Analysis On The Impact Of The Transformation From Business Tax To Value Added Tax On The Highway Transportation Industry

On January1,2012, the trial of the value-added tax transition from business tax to VAT for transportation and parts of modern service industries was implemented in Shanghai. It aims to adjust the economic structure and stabilize the economic growth. Furthermore, the VAT transition pilot areas continued to be expanded in twelve provinces. On August1,2013, VAT transition for transportation and parts of modern service industries was implemented nationwide. The reform of VAT transition has positive effects on the corporations and economy. Owing to the wide fields and the different features of many industries, changes to the tax burden of different industries vary, especially tax burden of part of the transportation industries may increase. With the rapid development of the economy, the highway transportation industry plays an important role in the transportation industry. The transportation industry has closely connection with the manufacturing, on the one hand, tax burden influences the management of the highway transportation corporation, on the other hand, it has effects on the tax burden of manufacturing. This paper focuses on the influence of VAT transition to the highway transportation. In this paper,based on the reviewing of relevant references home and abroad, the following research work is done:First, this paper analyses the situation of the highway transportation. Secondly, this paper uses the data from2010to2012of X transportation corporation to calculate tax burden,and find out the influence factors, involving tax rate, business model, fixed assets and the deduction items. Then this paper analyzes the influence of the tax reform to the corporation transformation and the problems, focusing on the financial management and the industry chain. Finally, based on the influence factors, this paper finds out the problems of VAT transition for the highway transportation, and put forward corresponding suggestions in order to benefit the corporation and the industry.There’re two innovations of this paper. The first one is choosing highway transportation industry as the study of object, which can not only see the effects of transformation from business tax to value added tax on highway transportation industry, but give a reference for the transformation from business tax to value added tax on more industries. The second one is taking a highway transportation company as a case, using financial data,and comparing different operating models to calculate the change of tax burden, which is deeper and more practical.