Research On The Impact Of The "VAT Reform" On The Operating Performance Of Commercial Banks

As the country’s largest tax category,VAT has been implemented in accordance with the State Council’s unified deployment.On May 1,2016,China began to carry out reform in construction,real estate,finance,and life services."Reform and increase" is an important part of fiscal and tax reform,which is conducive to optimizing the fiscal and tax system and creating good conditions for the development of the real economy."The increase of camps" forced local governments to rethink the key forms of taxation,thus guiding local governments to develop superior industries according to local conditions.The implementation of the reform will help solve the problem of double taxation,thus reducing the tax burden on the development of banks,facilitating the optimization of the economic structure,promoting the rapid development of the service industry,promoting the transformation of the business model,promoting employment,and generating many chain effects.In the overall situation of economic development,we can optimize the industrial structure and achieve the purpose of economic transformation.Taking A commercial bank as an example,this paper mainly uses the case analysis method to study the impact of "change and increase" on the bank’s financial performance.Through the analysis of the financial indicators before and after the promotion of the "reform and increase" policy,it can be seen that in the short term of the reform of the commercial banks,the tax burden has decreased,which is conducive to the improvement of short-term commercial banks ’business performance;From a long-term perspective,the "reform of the camp" mainly affected the relevant profit indicators of commercial banks,and the promotion of policies strengthened the profitability of commercial banks.In order to understand more clearly how the increase in the bank’s profitability is affected,DuPont’s analysis method is used to study the specific changes in its earnings per share,equity return rate,and asset yield rate,which has an effect on the profitability of commercial banks,but it is found in the study.,Commercial banks have increased their business risk due to the implementation of "change and increase",and finally they suggest how to improve their profitability and improve their risk preventionn ability.