The Influence Of Logstic Equipment Financial Leasing Under The Reform Of Business Tax To VAT

2012onwards, China began to gradually trial business tax reform VAT,the starting point for reducing the double taxation of the various sectorsinvolved in the reform will have a huge impact. In the overall environment ofBT-VAT reform, financial leasing industry and logistics industry needs to befully prepared to face the many effects of tax reform may bring.The essence of the BT-VAT reform is that the VAT chain will open upthe industry to the national economy as a whole from the tax burden in amore perfect tax system. Through the introduction of logistics enterprisesfinance lease case, this article reveals the impact of tax increases on the twoindustries actually generated by BT-VAT reform. For the same case,calculation and analysis from both lessor and lessee’s angles are performed,and also selected sale-leaseback and direct financing leases transactions, which are two most commonly used trading patterns, are integrated into thestudy.In the business tax reform VAT initial process, the lessor and lesseeoriginal balance will be broken on pricing. Profit margins released from thegovernment tax bureau need to be reallocated, and the final net profits onenterprises’ P&L statement, and this will lead to financial leasing pricenegotiations that the two sides must make appropriate adjustments to achievea new balance. In this paper, starting from the finance lease cases, additionalchanges before and after the process of BT-VAT reform are combined withactual operation of the leasing project structural design features, and pricingadjustments are given by a variety of methods which can be adapted todifferent situations by finance leasing companies in the tax reform. This mayprovide ideas on quotation adjustments decisions and logistic companies’ taxplanning in the continued use of finance leasing as an effective financing tool.