Study On The Impact Of VAT Transformation On Enterprise Tax Burden And Performance

Since January 1, 2009,the State Department implement the value-added tax reform in the country, so that all regions of the country, in various industries can deduct input tax arising from newly purchased equipment, and the country began to implement consumption-based VAT policy. This is a milestone in the VAT tax reform, and promote the development of enterprises, so that market competitiveness and risk-resisting ability of enterprises increased significantly help companies resist against the financial crisis. The implementation of the policy show a good economic effect, the full implementation of consumption-based VAT to enable enterprises to reduce the tax burden, operating results improved significantly stimulate enterprises to increase investment, promote business transformation and upgrading. The implementation of the policy can promote the adjustment of industrial structure and improve the overall economic competitiveness.VAT has a significant impact on the enterprise, this paper analyzes the impact of the VAT theoretically restructuring and other aspects of corporate finance, and to-day gross of shares for example VAT on business impact analysis, on this basis, the analysis the impact of VAT on the corporate tax burden, investment decisions, profit disposal, industry competitiveness generated by Xinjiang Tianshan wool Textile Co. quantitative analysis, analysis of the pros and cons of VAT on business, the last of enterprises production and management how to seize opportunities and make recommendations to better take advantage of new value-added tax policy, and how to better improve the VAT policy recommendations.Based on the case study about Xinjiang Tianshan wool Textile Co, main conclusions: First, VAT after restructuring can reduce the corporate tax burden, so that corporate profits surged, accelerate cash flow, improve the financial situation; Second, VAT may encourage enterprises to increase investment in fixed assets efforts to accelerate upgrading equipment and technology upgrades, and promoting industrial restructuring, promote healthy economic development; Third, VAT provides a relatively level playing field, so that China’s foreign-funded enterprises in the enjoyment of the VAT can get tax relief policies equal treatment, help enhance market competitiveness of Chinese enterprises. Make recommendations based on the conclusions of this paper are from the micro and macro aspects. Micro aspects: companies must choose to purchase fixed assets from the general taxpayer place; corporate restructuring should use the opportunity to expand investment; business plan should be a reasonable investment in fixed assets of the speed and scale. Macro areas: government should further improve the VAT reform policies, relieve lower-day gross profit shares and other labor-intensive industries situation; appropriate to expand the range and scope of the VAT levy VAT enterprises.