The Effect Of Replacing Business Tax With VAT On Air Transportation

The experimental reform of "the Change from Business Tax to VAT" goes through about 4 years from 2012 to now,which will be carried out comprehensively.As "the Change from Business Tax to VAT" has a dual effect on the tax of service trades and corporation,the tax burden of some enterprises increase rather than decrease.The emergence of the phenomenon also causes widespread concern in the community,especially the academic researchers.Most companies at last achieve the goal of tax reduction with the number of years to adapt.As we all know,the air transport industry bears a high amount of investment and high transport costs.At the same time,it is considered as highly profitable industry because of its special characteristic,but in fact,it is not entirely true.Before the Change from Business to VAT,the heavy tax burden is unable to be deducted,and early days of the policy of Business tax reform VAT,There is a phenomenon that the tax burden,to some degree,increases rather than decreased.After more than two years exploration,air transport companies are gradually adapting to innovation and seeking a positive way to deal with.This discourse focuses on the analysis of two methods via normative research and case studies.First,based on fundamental research,the paper analyzes the effect of "Business tax reform VAT" on transport business accounting,fixed assets investment,operating performance,cash flowand accounting calculation.What's more,taking Chinese international Airlines as an example,the paper uses case studies to analyze the impact of the full implementation of "Business tax reform VAT" on the projects related to turnover tax burden,income tax burden,fixed assets turnover,operating profit and cash flow.It is expected to draw a concrete conclusion through data analysis that the tax burden of Air China after "Business tax reform VAT" is heavier.At last,according to present situation of "Business tax reform VAT",five suggestions are given in order to show how to actively and effectively deal with the policy of the Change from Business to VAT after the full implementation of the policy.The five suggestions are: to strengthen the cost management and bill management;to strengthen air transport enterprise purchasing management;to select appropriate sale and settle accounts ways;scientific tax planning;to strengthen business-related personnel in-depth training settlement.The paper wants to provide theoretical support to air transport to positive cope with "Business tax reform VAT" based on the analysis and research.