Study On Influence Of Business Tax Reformed To VAT On The Business Performance

Since the1994tax reform, the voice of the business tax reform has continued. The main reason is that the business tax and VAT in parallel has some drawbacks. The two taxes in parallel not only increase difficulties of tax collection, but also create a double taxation issue, which hinder the development of tertiary industry. In order to ensure the coordination of tax systems and industrial development, the Ministry of Finance and State Administration of Taxation jointly issued the" business tax will be replaced by VAT pilot program " and provided that Shanghai will be the first one to carry out transport industry and modern service industry pilot from1January2012, and then the rang will be expanded to Beijing, Tianjin and other cities, hoping a national pilot on August1,2013.In Macro,"business tax will be replaced by VAT" is important to improve the tax system, vigorously develop the tertiary industry, promote economic restructuring and increase comprehensive national strength. In Microscopic,"business tax will be replaced by VAT "would have a significant impact on the enterprise’s production, business activities and investment behavior.In the context of the business tax reform VAT, this paper introduce the business tax reform VAT and corporate performance, and then applies the theoretical analysis, descriptive analysis and regression analysis to explain the effect of "business tax will be replaced by VAT" to business performance. This thesis is divided into five parts, the first part reviews relevant documents at home and abroad; second part introduces business tax reformed to the value-added tax and enterprise performance, starting with the two basic theories of tax, defining the relevant concepts of, introducing the policy of business tax reformed to the value-added, and then elaborating the concept of business performance and indicators, selecting corporate performance indicators used in this paper; third part uses theoretical analysis, firstly establishes a theoretical framework, and then does the specific analysis; part IV utilizes empirical analysis, using descriptive analysis and regression analysis, mainly analyze relevant data from business tax reformed to VAT pilot enterprises and non-pilot enterprises; fifth part of the study, this paper put forward policy recommendations from both the government and corporate.Research shows that the effect of "business tax reformed to VAT policy" on the different sectors is not the same. After the reform, the performance of transportation enterprises does not improve and decreased in the contrary. Mainly because the main cost of transportation cannot deduct input tax, and can’t get tax-deductible VAT invoices from non-pilot regions. In addition, enterprises have not been able to adjust pricing, do tax planning and other issues due to short time of reform. The performance of IT services companies increase, but the effect is not very obvious.I put forward policy recommendations both from the government and corporate to problems found. The government should expand the scope of "business tax reformed to VAT policy "and increase the deductible items to ensure the integrity of the VAT deduction chain; the enterprises should combine their specific business scale and scope, research the impact on business operations, financial and other aspects and draw up appropriate strategies.