Research On Influences Of Replacing The Business Tax With VAT On The Tax Burden Of Communication Corporation Y

Taxes have been closely bound up with our daily lives,and the collection of business tax has been established as tradition in China.The Value Added Tax(VAT),which originated from France,can effectively prevent the problem of duplicated taxation and improve the tax administration with its special collection method.Replacing business tax with VAT is an important step of our country' s recent tax reform,the implementation of which helps to promote the transformation and upgrading of our domestic enterprises.The communications industry is closely related to social production and the civil society.It was once a traditional business taxation industry,but has been among the first batch of pilot sectors transferred to VAT since 2014,drawing forth the research value of its taxation transformation.First of all,this paper introduces the background of replacing the business tax with a value-added tax in our country and reviews the past literature involving taxation transformation in the communications industry.Then it introduces the current advanced value-added tax collection models in the world and summarizes their advantages.Possible proposes are discussed in line with the national conditions.Secondly,comparative analysis method is applied to analyze the change of tax burden due to the tax transformation of communication corporation Y,which is representative of its industry.The paper mainly focuses on the change rate of four indicators,namely the turnover tax,income tax,additional tax and the comprehensive tax burden,and then analyzes the impact of tax transformation on the profitability of corporation Y.The paper attempts to break the time limit of current researches and extend the research time period to study the long-term influences of replacing business tax with VAT on the tax burden of corporation Y.Finally,recommendations are proposed.Three major problems are raised in the face of Y corporation and the paper gives its recommendation regarding the problems from four dimensions:cost control,administration level,sales mode and invoices management of the enterprise,so as to facilitate corporation Y to better deal with future challenges coming with the tax transformation.