Analysis On The Impacts Of The Postal DF CO., LTD Of The Business Tax Reform To Levy VAT

Postal service occupies an important status in the national economic system. By studying the impact of Business Tax Reform of VAT policy which has changed from business tax to value-added tax to the postal enterprises and the corresponding measures they take, we may find the problems of postal enterprises in Business Tax Reform of VAT system and how they pursue more profit after tax.Business Tax Reform of VAT has been put into practice on a trial basis since January 1, 2012, mainly for all the industries of transportation and part of modern service industry in Shanghai. It was applied in the whole country From August 1, 2012. At the end of 2013, the state council executive meeting decided that the railway transport and postal services are included to the business tax to value-added tax policies’ scope from January 1, 2014. According to the state council executive meeting’s decision, the ministry of finance and the state administration of taxation jointly issued notice “About the railway transportation and postal service included in the business tax to value-added tax policies”(finance and taxation [2013] no. 106), which has been clearly confirmed that the railway transportation and postal service included in the business tax to value-added tax policies on December 2013, 12. Since then, the postal service industry which separate itself from postal and telecommunication services enter the pilot.The primary purpose of business tax to value-added tax policies is to unify the goods services tax system, the service industry should be brought into the VAT deduction chain not only solving the problem which the goods and services both been taxed, but also reducing the corporate tax burden, in order to reduce the production cost, and contribute to form a better virtuous circle of the society. While, each enterprise has different industry background and business operation characteristics, so the tax reform does not necessarily make every enterprise tax burden reduced, some enterprises may be not reduced, but also increased. Therefore, although original intention of business tax to value-added tax policy is to reduce the corporate tax burden, different enterprise has different results.In this paper, the influence of the business tax to value-added tax policy to the postal enterprises is the research target. This paper adopted the combination of theory and case analysis research method, on the base of the data which is processed from the DF postal company annual report and relevant research materials. Then, by analyzing the financial statement of DF postal company, tax problems are contrasted and the influence is analyzed which business tax to value-added tax policies affect the postal enterprises before and after the tax reform. Finally present measures which the postal company may take.Through these research, this paper gave the following conclude: after a short period the tax burden and tax related costs of the postal company will rise after business tax to value-added tax, but in the long term, tax burden of the company will reduce and tend to be balance. Postal company can reduce tax accordingly in the short term through tax management.