The Influence Of Value-Added Tax Reform On Economic Actions Of Enterprises

The value-added tax (VAT) reform began in 2004, in the area of northeast. But there was also a debate about it's object and approach. The argument focused on two questions. One is the tradeoff between the neutrality of VAT and tax benefit for the Northeast rejuvenation strategy; another is the conflict between pilot project for starting easily and influence of path dependence. The pilot project regulated area, industries, range of deduction, and incremental deduction. Government took these steps for reducing the impact of reform on financial income and economic stability.In this paper, the history of VAT and policy VAT reform was introduced. The analysis based on the theory of tax neutrality and institution change was given later. Firstly, according to the situation of our country, the production type of VAT was adopted in ten years. It will be a restriction for reform. So the pilot project was used to start the reform. Secondly, the pilot project did not accord with tax neutrality. But, there was value for the pilot project, because it can obtain the experience. Thirdly, the reform was a compellable institution change. The pilot project will take path- dependence, which meant the reform take place by steps. The pilot project should only be a transition. The government need take new ways to maintain the goal of reform.Through these analyses, the VAT reform was clear presented. Then the good influence of VAT reform on tax burden, financial affairs index, and status of competition in market of enterprises was analyzed. The change of tax burden was the most basic and marked effect. In fact, the improvement of financial affairs index and status of competition in market of enterprises was not sure. According to the front conclusions, the action of investment, financing, accounting, market stage, profit distribution, and ratepaying of enterprises was analyzed. The enterprise will increase the investment, which focus on the policy. It also will increase actions of financing. It will change the behavior of accounting. It will decrease the profit distribution. It will occupy bigger market. It will make some tax planning, and actions to lessen tax. The action of investment was most basic and marked. The action of ratepaying was very active. It will be a challenge for the levy. Two special analyses, which were the issues about tax planning of small size taxpayer and influence of enterprise in different life cycle, were given to improve the research. At last, some advice for government and enterprises were given. With the experience of pilot project, The VAT reform should be implemented on...