Research On The Impact Of “business Tax To Value-added Tax” On Enterprise Technological Innovatio

In recent years,the Chinese government has emphasized the importance of comprehensively deepening tax and revenue reform,with VAT reform being the highest priority of tax and revenue reform.In 2012,the policy of replacing business tax with VAT was piloted in some industries in Shanghai,and by May 1,2016,the policy of replacing business tax with VAT had covered all industries nationwide,enabling China to successfully complete the tax system transformation.The improvement of the technological innovation level of enterprises needs the support of tax policies,China has continued to increase the tax incentives for technological innovation for more than ten years,and the policy as one of the important tax policies,through the realization of the goal of "only reducing but not increasing" the corporate tax burden,has effectively promoted the innovation and development of enterprises.This paper examines the impact of the switch from business tax to VAT on corporate technological innovation and its mechanism based on an analysis of data from listed A-share companies from 2009 to 2019,and selects representative Baoxin Software as a case study for relevant analysis.In the end,the following conclusions were reached:(1)The policy of replacing business tax with VAT could significantly increase the level of technological innovation for the company.(2)The policy of replacing business tax with VAT can contribute significantly to technological innovation in non-state-owned enterprises,but not in state-owned enterprises;after the implementation of the policy of replacing business tax with VAT,the level of technological innovation in high-tech enterprises increased significantly,while the level of technological innovation in non-high-tech enterprises did not increase significantly.(3)Policy mechanisms to promote business technological innovation by replacing business tax with VAT:the policy of replacing business tax with VAT can reduce the tax burden by "avoiding double taxation","input tax deduction" and "VAT refund and exemption",which can affect enterprise technological innovation;At the same time,the policy can also alleviate financial constraints for companies by "improving the internal capital situation of companies and optimizing the capital structure" and then acting on the basis of companies’ technological innovations.(4)The policy of replacing business tax with VAT has effectively improved the level of innovations introduced and the output of Baoxin Software,which has reduced the tax burden by increasing fixed asset investment,VAT refund,division of labor and outsourcing,etc.,and alleviated the financing constraints of enterprises by increasing cash inflow from financing activities and foreign cooperation,thereby promoting the technological innovation of Baoxin Software.Finally,the article offers some countermeasures and recommendations based on empirical data and case studies:(1)The government needs to establish a more complete tax system and continue to increase tax incentives for scientific and technological innovation;(2)The state needs to improve the identification standards for high-tech enterprises,in addition,the government needs to guarantee the financial needs of non-state-owned enterprises and help them expand financing channels,and alleviate the dilemma of innovation difficulties caused by insufficient R&D funds;(3)Enterprises need to strengthen internal supervision,reasonably apply tax relief funds to technological innovation,and focus on enterprise R&D and the cultivation of technical talents.