A Case Study On The Influences Of Value-Added Tax Restructuring On Fixed Assets Investment

Fixed Assets Investment(FAI) plays an important role in the investment decisions of an enterprise and reflects its strategic direction of development. China’s VAT reform has exerted very direct impact on FAI since 2009. The transition of VAT from production to consumption caused input VAT deduction on fixed assets(FA) purchase. Such result will encourage enterprises to enlarge production capacity, update production facility, and improve techniques.Based on a great deal of literature, the thesis firstly introduces the background, necessity, significance and process of VAT restructuring theoretically, and then analyses the impact of tax reform on FAI. From a case printing enterprise, it analyses FAI of the printing industry on the global status of the printing industry and China’s printing industry outlook. Furthermore, it analyses the practical influences of VAT restructuring on enterprise FAI based on the specific statistics of the case enterprise. Consequently, it comes to a conclusion that VAT restructuring can improve enterprise FAI, but still has limitations to some extent currently. Rational suggestions are presented to China’s VAT reform as well as FAI of the case enterprise.