Research On The Effect Of The "Replacing Business Tax With VAT" Policy On The Servitization Of Mechanical Manufacturing Industry

As China’s manufacturing industry enters a new normal of low-speed growth,it is urgent to adjust structure,promote transformation and increase efficiency.The "Replacing Business Tax with VAT" Policy implemented in 2016 has broken the tax barriers between manufacturing industry and service industry,promoted the optimization of industrial division and the integration of secondary and tertiary industries,thus is an important opportunity for the servitization of manufacturing industry.This paper take Sany Heavy Industry,which takes "Manufacturing+Service" as its transformation strategy,as an example to study whether the policy can guide and assist manufacturing enterprises in the process of servitization,and put forward some suggestions.Through the analysis of motivation,it is found that the internal motivation of Sany’s transformation is the tax saving cash flow brought by the policy,and under the influence of external motivation,Sany has the tendency of specializing division.Then,from the perspective of value chain,this paper analyzed the service-oriented input-output efficiency and transformation effect of Sany.It was found that the policy would affect its R&D investment mode and employment behavior.Meanwhile,it also has promoted sany’s expansion of the downstream services.Furthermore,we find that there is room for improvement in Sany,such as the bottleneck of technology innovation is obvious,the service division has a low status,and the type of external service is limited,so the added value of its service is not high.In summary,Sany’s strategic of promoting "Manufacturing+Service" is in line with the direction of the "Replacing Business Tax with VAT" policy.It can provide certain support to Sany’s servitization,thus becoming an opportunity to realize the development of the whole value chain.However,to make full use of the policy,its transformation path still needs to be optimized,and this paper also gives corresponding suggestions.