The Effects Of "Reform Of Replacing Business Tax With VAT" On Catering Enterprises In Urumqi And The Countermeasures Studies

The replacement of business tax with value-added tax(replacement)is an important part of China's tax reform.China had promoted the replacement nationwide by May 1,2016,which marks a major historic breakthrough in the reform of China's tax system.The replacement is mainly to further reduce the tax burden,enhance the vitality of enterprises,and lay a solid foundation for economic growth.In recent years,with the tax system reform The third industry gradually become one of pillar industries of our country.The catering industry,as an important branch of the tertiary industry,plays an indispensable role in ensuring employment and improving livelihood,which is an important component of building socialist well-off society.Therefore,the implementation and improvement of the replacement were promoted by researching the influence of the replacement on catering industry and analyzing as well as proposing suggestions towards the existing issues in this reform so as to drive healthy development of catering industry.In this paper,taking the influence of the replacement on catering industry in Urumqi as research object,based on discussion of the background and history of it in China,by using questionnaire,interviewing and case study method,the issues of the replacement in catering industry in Urumqi were analyzed to conclude the result that there are positive effects on reduce cost,increase margin,promote industry development and maintain regional stability by the replacement for catering enterprises.At the same time,the questionnaire also reflected the lack of tax staff in the catering enterprises in Urumqi as well as the immature upstream supply chain.Finally,according to the research results,it was proposed that the catering enterprises under the new tax system can improve the tax planning level of financial personnel,reasonably choose suppliers and promote service outsourcing so as to further reduce the financial staff.At the same time,they can standardize accounting,increase financial personnel,improve the mechanization of the catering industry and expand the industrial chain to strengthen enterprise management and speed up enterprise development.In view of the current replacement policy,recommendations were proposed to reduce the tax rate,expand the scope of deduction,strengthen the supporting policies and strengthen follow-up management.