The Business Tax Reform To Levy VAT And Countermeasures Of LT Telecommunications Corporation

In our tax system, business tax and VAT as the main turnover taxes occupy an important position. Business tax has thousands of years of history, and its footprint can be traced back the Zhou Dynasty. Business tax has played a very important role in promoting China’ economic development. But with China’s market economy continuing to develop and change, business tax gradually revealed some shortcomings in the context of economic globalization and market competition more liberalization, it is more and more weak leading the sudden emergence of value-added tax. Although it is only a few decades of the implementation of China VAT, it proved it can replace business tax.In order to avoid double taxation and reduce the tax burden on businesses, while optimizing the tax structure and other targets, China government in 2011 by the Ministry of Finance, State Administration of Taxation jointly issued the business tax reform to VAT pilot program, thus, it opened the camp changed to increase prelude.The telecommunications industry as an important producer services, after the transportation, post and telecommunications industry, and part of the modern service industry is also becoming part of the camp changed to increase the pilot. From the characteristic of VAT, it will help to further improve the value-added tax chain, while increasing the downstream business input tax deduction, thereby allowing more businesses to enjoy the dividends of reform.This paper introduces the basic situation of the business tax reform to VAT, including the background, progress and its effect. Then it takes LT telecommunications company as an example to specifically analysis the impact of business tax reform to VAT, which focuses on the income and expenses change of LT company after business tax reform to VAT, and how it affects the final profit. Besides, from the upstream and downstream industry chain to analyze how the telecommunications industry impacts on the upstream and downstream business interests and how it develops and changes. Finally, according to the current business situation of LT company it brings three problems need to resolve.At last, as how to deal with the challenges of business tax reform to VAT of telecommunications industry, it proposed the corresponding countermeasures and suggestions, mainly from the following aspects:Firstly, make a good system useful on the relevant principles; secondly, improve the enterprise management mode; Thirdly, make reasonable arrangements for investment in fixed assets; fourthly, improve the financial system.A comprehensive summary and outlook is in the final chapter of this paper. From the more popular telecommunications business tax reform to VAT nowadays, combining with a representative LT telecommunications companies, the paper ultimately makes a more complete solution through comprehensive analysis and discussion, which not only has theoretical significance, but also has some practical significance.