Research On Business Tax Paid VAT For The Telecom Enterprises

From1979to1984, china started the experiment of the value-added taxation systemin very limited area. In1993,《The provisional regulations of the value-added taxationsystem in china》 has been published. Since2011, china has focused on the reform of theVAT, which including expanding the coverage of the VAT system, and reducing thebusiness taxation. It is imperative for the telecommunication enterprises in china toparticipate in this reform. The author attempts to analysis the impact on thetelecommunication enterprises before the implementation of the VAT system, also givesome solutions.Based on the analysis of the characteristics of the VAT system and history as aforeshadowing, relating to the internal and external forces of the telecommunicationenterprises, this article aimed to explore the external economic relations, the qualificationand operating results of the enterprises, also the managerial and production impact of theenterprises. Besides, this article focusing on three questions: how to change the operatingstrategy by adopting the VAT system and how to pass the pressure to support productionmanufacturing? Finally, how to give some advices on effective decisions? To answer thethree questions above, the first by giving some examples and evidences mainly from taxcollection and administration mode, business mode adjustment and optimization, theprocurement management model optimization, customer data managing mode adjustment,and the optimization of the finance and taxation departments and recruitment ofprofessionals. Regards to the second question above, due to the enormous size of thetelecommunication enterprise and the complexity of its information system,transformation of the taxation system is difficult. The author in this article did not specifymention how to transform the system, but discussed the necessity of the more practicalthree dimension systematic transformation. The third question is also combined with theexample is given to illustrate the MBA quantitative tools to solve how to increase after thedecision or camp the importance and practicability, and hopes to take industry camp toincrease the opportunity to provide business quantitative decision-making level, in thenear future to establish relatively complete project benefit evaluation system. Finally to strive for the preferential tax treatment and electricity input invoice management as anexample to illustrate the importance of tax planning.