Value-added Tax Transformation On The Financial Impact Of Corporate

Value-added tax since its birth, its revenue neutrality principle, broaden the tax base, improve international competitiveness of products and other advantages will soon stand out by the world’s various countries of all ages. According to the tax base width is different from value-added tax is divided into production-type VAT, income-based value-added tax and consumption-based value-added tax.The 1994 tax reform, China is in the national economy and rapid growth of investment in fixed assets out of control, the proportion of fiscal revenues decreased year by year period. To ensure that fiscal revenues, to limit the expansion of the transition of non-rational investment, China’s production value-added tax was chosen, namely, in the calculation of taxable value-added, there is no consumption of fixed assets and other parts of the means of production to be deducted. With the economic situation changes, since 1994 to implement the production-type VAT revealed shortcomings and contradictions, it is no longer suitable for China’s market economy. The world demands the form of a unified single market turnover tax system,Consumption-type VAT destination principle of taxation Zeyi adapted to international requirements. From the perspective of optimizing the tax system, consumption tax, VAT is a value-added tax transformation of necessity. European Union (in November 1993, formerly known as the European Community, the same below) countries in the 1954-2004 years,50 years on the implementation and promotion of value-added tax in the world achieved outstanding achievements often proud, but also the whole world recognized. At present, the implementation of value-added tax system, more than 140 countries (regions), there are more than 90% of the consumer-oriented value-added tax, and the countries exports are generally zero-rate. From the developed countries through the Yan Kan, consumption-type VAT than the production-based value-added tax has obvious advantages, but also our country, consumption-type VAT conditions are basically ripe. From the domestic situation, in recent years, China’s economic situation has undergone tremendous changes. Gradually improve the socialist market economic system, GDP for many years to maintain double-digit growth, expanding domestic demand and exports become one of the important tasks. From the international situation, at present, by the U.S. sub-prime crisis triggered by the financial crisis spread to Europe, Asia and Latin America, a noticeable slowdown in global economic growth momentum in some countries very To signs of recession. The international economic downturn, led directly to the reduction of China’s foreign trade and exports, especially to a larger drop in exports to the U.S.. January 1, 2009 launch of value-added tax transformation of the country is to produce value-added tax to consumption-based model of a major tax reform is to maintain a steady and rapid development of China’s economic policies a major positive.China adopted a tax-sharing system of financial distribution system, restructuring of tax increase will have a significant impact at all levels of government finances. Because China’s fiscal revenue sources, there is one-third of revenues come from value-added tax, while the central government accounted for more than half of value-added tax revenues. The implementation of consumption-type VAT would lead to revenue of the main factors reducing the value-added tax reduction, urban maintenance and construction tax reduction in corporate income tax surcharge for education of the reduction and the increase in these areas. In the short term, value-added tax increase in China’s financial burden, with the current fiscal policy is certainly the conflict. The long-term perspective, Value-added tax reform will help the manufacturing industrial upgrading and structural adjustment, to stimulate and promote domestic demand, encouraged by technological advances for growth patterns, and thus economic growth will play an important role in boosting, the total fiscal revenue will follow gradual growth.The short term, value-added tax transformation despite the narrow tax base will lead to Chongqing Municipality, Chongqing Municipality in the current economic strength and industrial structure, the restructuring of the Chongqing little effect on fiscal revenue, fiscal would continue to increase, will not bring significant negative impact. The long term, value-added tax will greatly stimulate investment and promote industrial restructuring, elimination of double taxation and enhance product competitiveness, economic growth have a positive role in promoting. The implementation of value-added tax transformation on Chongqing’s economy and society is both an opportunity and a challenge, as China’s largest value-added tax, value-added tax transformation itself is by no means the end of reform, through further value-added tax reform, make full play to its unique advantages, as long as we efforts to overcome the current difficulties, firmly establish the scientific development concept, to help enterprises seize opportunities to accelerate development and achieve sound and rapid development of the local economy.Value-added tax on enterprises financial impact on the performance of consumption-based value-added tax revenue of the project is to make a direct impact on business investment and value-added tax paid by the year in order to value-added tax as the tax basis of the urban maintenance and construction tax and education surcharges, etc. to reduce enterprise cash flows. Meanwhile, the value-added tax, the enterprise’s fixed assets recorded a non-tax costs, resulting in the depreciation life of enterprises in the year to reduce the amount of provision for depreciation, which would be a corresponding increase in corporate profits, enterprises should pay corporate income tax will be consequent increase in cash flow reduction (part of the increase in profits),Corporate tax structure is also changed. In this sense, the production-oriented value-added tax into a consumption-type VAT that primarily affects the cash flow (equivalent to give enterprises the time value of money) as well as corporate profits and tax burden indicators of the level of investment, thus affecting the corporate investment income and investment decisions. Therefore, this article attempt to value-added tax transformation on the cash flow, tax, after-tax net income, expected rate of return and other indicators of changes in investment analysis to study the value-added tax of enterprises and the whole social investment stimulus. At the same time, this article from a cost point of view of organic structure Analysis of value-added tax transformation on the impact of different types of enterprises. The implementation of consumption-type VAT can solve the actual tax burden of capital-intensive emphasis on the issue are conducive to integration into the international economic environment under the conditions of the development of Chinese enterprises; from short-term, value-added tax is to influence and benefit the least labor-intensive enterprise, but in the long term, value-added tax benefit to encourage the transformation of relying on technological progress to promote the evolution of growth patterns; value-added tax is conducive to promoting scientific and technological progress, speed up high-tech industry, export promotion, increased international competition in high-tech products edge is to encourage investment in technology-intensive enterprises, cultivating new economic growth point.In this situation, the timely introduction of value-added tax reform, China is implementing a policy of tax cuts, one of the important measures that businesses should seize this historic opportunity to fully enjoy the value-added tax benefits arising from the restructuring. In this value-added tax transformation process, the enterprises should promptly take the following countermeasures:purchases of fixed assets should try to choose the general taxpayer, as far as possible obtain a copy of value-added tax invoices, VAT deduction should choose the best time, the enterprises should make business planning and tax planning and so on.This paper discusses the emergence and development of value-added tax, value-added tax transformation of the background, significance and feasibility, focuses on value-added tax on the revenue impact on the enterprise’s financial environment and the impact of financial decision-making, and in the consumer value-added tax policy coping strategies to be taken on an analysis and recommendations of the thinking.