The Study Of Effects And Tactics For Telecom Enterprises About The Value-added Tax Reformation

With the fast development of economy and the upgrading in the industrial structure,the service industry,which is indispensable in the economic structure,has made a great progress.To reduce tax burden and duplicated taxation on enterprises,and lightening the operating cost by abating the tax in structure as well,The State Council has enacted a law that the business tax would be displaced by the VAT across the whole country during the Twelfth Five-Year Plan.The tax reformation was piloted first in Shanghai,which was involved in transportation industry and part of the modern service sectors.As the telecom industry is an important part of service sector and is closely related to national security and our daily life,on April 29 th 2014,the Ministry of Finance and State Administration of Taxation have jointly released the document��The announcement of concerning to embrace the telecom industry into the reformation pilot program(No.43.2014)�.On the basis of this announcement,the companies or persons that have provided telecom services will only need to pay VAT instead of business tax since June 1st.This article has stated the progress of the reformation based on the background situation of our country.And it has also discussed the effects of accounting,tax level and internal control,put forward the tactics like normalizing the subject setting with procedures,accounting tax precisely,exacting the acquirement of the invoices,using the preferential policies reasonably,enforcing tax designing and internal control of the accounting,etc.By exemplifying a large telecom company in Wuhan,the writer analyzed the different tax levels before and after the reform,and presented useful suggestions as normalizing the deduction of input tax,promoting the control system of VAT,improving sales patterns,optimizing the investment and saving the tax via the preferential policies to reduce its tax burden.At the end of the paper,the writer summarized the financial influence of telecom enterprises by implementing the reformation and gave the expectation that the program would put this industry into a better future.