Research Of The Impact Of VAT On M Transportation Company

Since1January2012, our country has embarked on the pilot of replacing salestax with value added tax (VAT) in the transportation industry and some modernservice industry in Shanghai City, and then expanded the pilot countrywidegradually. This major tax system reform is another remarkable event in theprocess of our country’s tax reform after the implementation of the VATtransforming reform in2009. As the major infrastructure and fundamentalindustry of national economy, the transportation industry is one of the pilotindustries of this tax reform.Sales tax had been levied in the transportation industry for a long time in ourcountry. Sales tax takes the form of―collecting on full income and on every link‖.Due to sales tax, the problem of tax repetition existed in the transportationindustry, which is one of the restrictions on the long term development of theindustry. Implementing the sales tax to VAT reform is conducive to eliminatingtax repetition and enhancing the competition ability of the industry; is conduciveto promoting specializing division of labor and industry upgrading and advancesin technology; is conducive to increasing the demand of the transportation servicein the market and promoting the development and grow of the transportationindustry; is conducive to enhancing the operation and management level andestablishing modern enterprise mechanism in the industry.After three years running in the transportation industry, the VAT pilot reformhas achieved the goals and requirements on the whole, but at the same time, someproblems are exposed. Some transportation enterprises tax burden is increased.This paper takes M Transportation Company, one of the tax-increasing companyas an example, detailed analyzing the influence of replacing sales tax with VATon the company. This paper mainly includes the following contents:Chapter I introduces the background and meaning of choosing the theme,research contents and research methods. Chapter II introduces the advantages ofVAT and theoretical basis of replacing sales tax with VAT, research the necessityand feasibility of replacing sales tax with VAT in the transportation industry, thenintroduces the main content of VAT reform in the transportation industry. Chapter III introduces the basic situation of M Transportation Company and theimplementation scheme and steps of the company. Chapter IV analyzesinfluences of replacing sales tax with VAT on the tax burden, finance&accounting and operation&management of M Transportation Company. ChapterV puts forward strategies of reasonable tax burden, suggests of strengtheningfinance&accounting, suggests of perfecting the policies regarding VAT reformin the transportation industry in our country.From the concrete example, this paper measures the accounting data of year2013of M Transportation Company by using the data analysis method, analyzesthe influences of replacing sales tax with VAT on the turnover tax burden, finance&accounting and operation&management of M Transportation Company, putsforwards suggestions on the enterprises and policies level for influences ofreplacing sales tax with VAT on M Transportation Company.