The Impact Of The Reduction In The Value-added Tax Rate On Corporate Turnover Tax Burden And Corporate Performance

The policy of reducing the value-added tax rate by one percent is the first change in the value-added tax rate after the "tax reform." The tax reduction effect obtained by enterprises after the reduction of the value-added tax rate is of concern to the state and society.The research on the latest VAT reform policy can let the country and society understand the effectiveness of the policy,and allow enterprises to a certain extent understand the extent to which they benefit from the policy and how to respond to the new VAT reform measures.Due to their different bargaining power,enterprises experienced different policy effects after the value-added tax rate has dropped.This article divides the tax reduction effects obtained by enterprises into corporate turnover tax burdens and corporate performance changes.It explores the impact of corporate bargaining power on the decline in VAT rates from these two perspectives.First,the effects of the corporate tax burden pass-through ability on the reduction of the value-added tax rate on corporate turnover tax burden and corporate performance are discussed and analyzed from the theoretical level.Regarding the typical model of the turnover tax burden and the calculation method of corporate net profit margin,a relatively simplified mathematical equation is constructed,and six primary hypotheses are proposed.Taking 2016-2018 A-share non-financial listed companies in Shanghai and Shenzhen as the research object,the panel hypothesis was used to test the theoretical hypothesis,and the results were basically in line with expectations.The study found that a reduction of the value-added tax rate has a tax reduction effect on the general taxpayer's turnover tax burden and a positive effect on corporate performance.However,the various bargaining power of enterprises lead to different tax reduction effects and positive performance effects: under the same bargaining power of dealers,the value-added tax rate decreases,and the turnover tax and business performance paid by the company follow the supplier's bargaining power increases and decreases that is,the tax burden of the transfer tax burden is more reduced,and the positive effect of corporate performance is less.With the same bargaining power of the supplier,the value-added tax rate is reduced,and the corporate dealer's has no significant impact on the enterprise's turnover tax burden.Moreover,the performance of the company increases with the decrease of dealers' bargaining power.From this,it can be concluded that companies have not shared the tax reduction dividends equally,in the reform in which the value-added tax rate has fallen.Besides,the tax reduction bonus obtained by the enterprise cannot be judged solely by the change of the turnover tax burden.Enterprises rely on a stable tax burden transferability to conduct price games to obtain product profits.To a certain extent,the reduction in turnover tax burden is less,but the product profit has a more significant positive effect.In other words,the value-added tax reduction bonus is mainly obtained by enterprises with high bargaining power who have the pricing power of the purchase price and sales price of the tax-reduced products to improve corporate profits.Also,compared with state-owned enterprises,non-state-owned enterprises have a more significant impact on the decline in value-added tax rates on the turnover tax burden and business performance of large-scale enterprises.Compared with small-scale enterprises,large-scale enterprises have lower bargaining power on value-added tax rates.The impact of the corporate turnover tax burden and corporate performance is more pronounced.Finally,this article puts forward some suggestions from the government and enterprise level,hoping to help the VAT policy reform and corporate response.