Research On The Impact Of VAT On Manufacturing Financial Capacity

China began trial from production type VAT to consumption type VAT in theNortheast region in2004.Trying to expand the scope of the26old industrial base city inthe6provinces in Central of China,5city (AU) of Eastern Inner Mongolia andWenchuan earthquake disaster areas in Sichuan province in2007.The consumption typeVAT has been extended to nationwide in2009.I find that the literature study of transition of value-added tax in foreign countriesis less after referring to the research literature at home and abroad, and the researchresults are not in recent years. This is mainly due to foreign countries were theimplementation of consumption-based value-added tax directly when they startedimplementing value-added tax, the problem of value-added tax transformation does notexist. The literature study of transition of value-added tax at home is rich, mainlyreflecting in the macro level and micro level. But they rarely study on the effects of asector, or the span of time is relatively small. There has been a few years sinceSichuan-Chongqing region began to implement the consumption type VAT in2009.Whether the Sichuan-Chongqing region manufacturing industrial enterprises arehaving an impact or not after the transformation of value-added tax, particularly on theeffect of the financial ability is worth studying.Firstly, this paper analyzes the related theory of value added tax and financialability beginning from the microscopic point of view. Secondly, it analyzes theinfluence of the transformation of value-added tax on the financial ability ofmanufacturing industry in Sichuan and Chongqing. Once again the study sample isempirical data of manufacturing listing Corporation in Sichuan and Chongqing from2007to2011. It analyzes the value-added tax transformation of manufacturing industryfinancial ability of Sichuan and Chongqing, four main effects of transformation ofvalue-added tax on enterprises including the solvency, profitability, operation ability andthe development of ability. The paper is a further research on the effect of thetransformation of value-added tax, including descriptive analysis, paired sample T testand multiple linear regression analysis. Of course, the span of time is relatively long.Finally, the conclusion is that the transformation of value-added tax has a positiveeffect on solvency, a negative impact on profitability, uncertainty about the effectdirection of operation ability, a positive effect on the development of ability failed topass the test. Of course the policy of transformation of value-added tax has lagged behind.Based on the conclusion of the analysis is proposed to promote the development ofmanufacturing enterprises: The foundation is reasonable and moderate increase ofinvestment in fixed assets. The starting point is to optimize the industrial structure andaccelerate the adjustment of industrial structure. The key is to improve the corecompetitiveness of enterprises and exert industrial advantage. Go on for long is thegrasp of policy and steady work according to enterprise development.