The Effect Of VAT Reform On Logistics Corporate Tax Burden And Performance

VAT pilot expansion policy carried it out firstly on January 1st 2012 in Shanghai,On May 1,2016,VAT pilot expansion policy was carried out across the nation.All industries across the nation are included.To eliminate double taxation is the purpose of VAT pilot expansion.At the basis of eliminating double taxation,the tax reform also want to reduce corporate tax burden and adjust the industrial structure.The effect of tax reduction was most concerned.Logistics industry which first began to reform is the best research object.And logistics industry plays an important role in economic development.So it is very important to study the impact of reform on logistics industry.The research subject of this paper is enterprises in logistics industry.The object of study is VAT reform.This paper analyses the impacts of the VAT reforms on enterprises in logistics industry.Firstly,the paper briefly introduced the tax theory and VAT pilot expansion policy.Enterprise tax burden was introduced mostly.And then,the paper introduced taxes related to logistics industry,analyses the impacts of the VAT reforms on those taxes.On this basis the paper measured how did tax reform affect the tax burden of small-scale taxpayers and general taxpayers respectively This paper found that the tax reform reduced the tax burden of small-scale taxpayers.The tax burden of general taxpayers was not sure.The tax burden of general taxpayers was decided by input tax that can be deducted.The enterprises with enough input tax that can be deducted would reduce their tax burden.In the part of enterprise performance the paper studied from profitability,solvency and operating capacity.The paper also found the tax reform did not affect the enterprise performance.From the perspective of empirical research,based on 67 A-share listed companies’ Annual data during 2010 and 2015,the paper analyzed the impact of tax reform on corporate tax burden and result.In the tax burden model,the paper use the DID model for regression by setting up tax reform dummy variable.It concluded that: The VAT pilot expansion has reduced the burden on enterprises.To make result reliable,the paper did the stability test.In the corporate result model,we choose ROE,net sales rate,asset turnover radio,asset liability ratio as the explanatory variables.It concluded that: The VAT pilot expansion has reduced the burden on enterprises,but did not affect the corporate result.Finally,the paper made some recommendations from the perspective of both firms and the government.Such as: VAT rate reduction,expand the scope of tax deductible input,reasonable tax planning,change the mode of operation.