"Business Tax Replaced With VAT Reform",Value Chain Arrangement And Corporate Tax Burden

The "Business Tax Replaced with VAT Reform " policy can improve the chain of value-added tax,which is conducive to the use of value-added tax to promote the division and cooperation in the industry and reduce the tax burden.The tax reform solved the problem of double taxation.As of 2016,the state's cumulative reduction in tax revenue was RMB 121.4 billion.At the same time,it made the chain of VAT offsets more complete and promoted the prosperity and development of the tertiary industry and provided for the Chinese economy new momentum.However,there are also some cases where the effect of tax reduction at the initial stage of policy implementation is not obvious,and the tax burden of some industries has not declined yet.This article focuses on the question:how does the corporate tax burden change with the implementation of the reforms and whether the company is actively planning tax payment based on the tax reform policies,so as to obtain sustainable tax benefits.In other words,this article examines how two factors,policy factors and corporate aggressive planning behavior,affect corporate tax burden.The study of this issue has important implications for understanding the mechanism of the micro-effects of tax reform,and also provides a reference for enterprises to reduce tax in the context of the VAT reform.After analyzing the relevant literature,this paper conducts theoretical analysis and selects all A-share listed companies from 2008 to 2016 as samples.This paper statistically analyzes the changes in corporate tax burden,and then examines the impact mechanism and characteristics of policy tax reduction factor and tax avoidance factor on the reduction of corporate tax burden.In accordance with the implementation steps of the VAT reform,the difference-in-difference-in-differences(DDD)was used to test the tax reduction effect of the VAT reform.It focuses on analyzing whether the policy tax reduction effect has been gradually enhanced along with the progress of reform,and the difference of tax reduction effect between different industries.Simultaneous analysis of the effect of value chain arrangement on the tax deduction effect of the policy in this process.Grouping the samples according to the policy implementation stage,the original value-added tax industry and the reform industry,as well as the complexity of the value chain,comparatively analyze the influence of value chain arrangement on policy tax reduction under different circumstances.Empirical test find that,the policy of VAT reform has a tax-reducing effect.As the reform advances,the tax-reduction effect of the policy gradually increases.The originalVAT industry has a stronger tax reduction effect than the reformed industry.Through the value chain arrangement of businesses related to VAT reform,enterprises can make full use of the policy's tax reduction mechanism,further reduce corporate tax burden.As the reform advances,the value chain arrangement has a more significant effect on the tax deduction effect of the policy.The value chain arrangement is more significant in the original VAT industry than in the reform industry.Enterprises with high degree of complexity in the value chain are more conducive to lowering corporate tax burdens through the arrangement of value chains based on policy tax reduction mechanisms,which can reduce more corporate tax burden.This article has a certain theoretical and practical significance.On the one hand,an in-depth analysis of the mechanism of the micro-effects of the tax law reform and the impact of the company's coping behavior on the tax burden of the enterprise during the implementation of the policy,and at the same time,provided supporting evidence for the normative and case studies.On the other hand,it provides enterprises with a tax planning method under the current tax law system,that is,through the value chain arrangement,companies can use the policy tax reduction mechanism to further reduce corporate tax burden on the basis of benefiting from policy-based tax cuts.The innovation of this article lies in the fact that,from the perspective of tax planning,we can explore whether companies can reduce their tax burden through their own active response behaviors while benefiting from policy-based tax cuts.At the same time,the empirical research method fills in the blanks of past value chain research.