Analysis Of The Influence And The Countermeasures Of The "Business Tax To VAT" In The Transportation Industry

Since 1994,our country has implemented the production type VAT system.However,with the development of the economic situation,production type VAT already can't adapt to the mode of China's economic development.The State Council decided to change from the production type VAT to consumer VAT since 2009,and implement the policy of business tax and VAT tax in parallel.With the change of the economic structure of our country,China has strongly advocated the development of the tertiary industry.The original tax system defects become more and more prominent,hindering the development of economy,especially the service industry,which restricts the transformation of the economic structure of our country.With the business tax and VAT tax structure in parallel,the fixed assets input tax of enterprise purchase is not deductible,so the VAT deduction chain incomplete and the double taxation phenomenon has existed for a long time.Therefore,in order to solve the problem of double taxation,reduce the tax burden of enterprises,improve the tax system,the State Council decided to implement " Business tax to VAT " in the transportation industry and modern service industry from January 1,2012,in Shanghai for the pilot,which opened the " Business tax to VAT " prelude.As the basic industry of the national economy,the transportation industry is closely related to many industries,which has a direct impact on the level of China's national economy.The business tax to value-added tax can reduce repeated taxation,make the VAT chain integrity,balance the enterprise tax burden,promote the integration of the second and the third industry,so the transportation industry into the " Business tax to VAT " is of great significance.This article selects the air transport industry as the representative,one of the three major airlines,Air China Limited,as the research object.With tax neutral theory,tax burden theory,optimum taxation theory,optimal commodity tax theory as the theoretical basis for research,using case analysis method,qualitative analysis method,comparative analysis method and the combination of theory and reality method conduct analysis.Through analysis actuality-find the problem-put forward the strategy as traction,analysis the impact of "Business tax to VAT" on air China.For transportation industry,the impact of "Business tax to VAT" for different taxpayers' tax burden is different,and the impact on the upstream enterprises and downstream enterprises is also different.To analyze specific effects of "Business tax to VAT" to the enterprise,it is necessary to understand the applicable tax rate based,comprehensive analysis turnover tax,net profit,income tax,compare the financial data changes of before and after reform.The analysis of Air China data shows that the reform of the tax system has reduced corporate tax burden,increased the profits of the enterprise.This paper has analyzed the advantages and disadvantages of "Business tax to VAT" and summarized the problems in the Air China "Business tax to VAT" process.In the initial of "Business tax to VAT" appeared big fluctuation of input tax deduction amount about new purchases fixed assets,the input tax of financing lease unable to deduction,and the compliance of corporate accounts has been severely tested.Through reasonable planning to fixed assets investment,expand the input tax deductible range,optimize the internal management structure,strengthen the tax planning,apply for financial subsidies to solve these problems.Through Air China case can conclude,for the majority of enterprises,the "Business tax to VAT" after tax burden is reduced,but there are part of the enterprise's tax burden rise.This is because VAT rate is high,and early in the "Business tax to VAT" deductible input tax of fixed assets is less,but this phenomenon is temporary.The government can formulate some preferential policies or subsidies to help enterprises to spend interim period.In addition,this case can also conclude that reducing average taxpayer cognizance standard,reducing duplicate taxation is key for tax reform.The state should be efforts to reduce VAT rate,expand VAT deduction scope and build a harmonious and stable taxation system.The analysis of "Business tax to VAT" on Air China can provide experienced reference for the various enterprises in the transportation industry,even can provide theoretical guidance for the other trade,and promote the integration of the second and the third industry,provide a theoretical basis for establishing a new taxation system.