Research On Effects Of “the Reform Of Replacing Business Tax For VAT” On Small And Medium Enterprises In Xin Jiang

"Replacing Business Tax with VAT" is China’s important tax reform, reform of the VAT system has great significance. VAT system has two main characteristics: First, a wide range of tax, fair tax burden; the second is no double taxation, interlocking. However, to really achieve a fair and neutral principles of VAT,required horizontal and vertical chain of complete tax deductible. In 2004, China from production to consumption-based VAT system shift change has been gradually completed, to achieve a longitudinal chain of deduction. Today, the business tax to value added tax reform is to improve the lateral offset of the chain.In "Replacing Business Tax with VAT" The design and implementation of reforms, the SMEs to become important group can not be ignored. XinJiang’s rapid development of SMEs, the status and role of social development in XinJiang, increasing its growth rate directly affects the overall growth of the regional economy. It can be said SMEs have become a force for economic development in XinJiang, the adjustment in the industrial structure, product technology innovation to address aspects of urban employment and transfer of rural labor has played an increasingly important role in promoting social stability and a basis for development of force in XinJiang. In this paper, XinJiang SMEs research object, "Replacing Business Tax with VAT" on the XinJiang SMEs, help solve the financing difficulties of SMEs,governance structure is irrational, the low level of production technology, less competitive and other issues.Firstly, on the "Replacing Business Tax with VAT" and other important concepts of "SME" and carry out interpretation of the connotation and denotation, and sort out the basis of relevant theories; secondly by analyzing the current situation of SMEs development in XinJiang, select the transportation and advertising services in two a typical enterprise as a case empirical analysis of the Replacing Business Tax with VAT the impact of XinJiang SMEs; Finally, policy considerations to promote SME development in XinJiang Replacing Business Tax with VAT by analysis of the current system defects.The research shows that at present China’s "Replacing Business Tax with VAT" system is mainly the following shortcomings: First, the problems caused by excessive tax grade; the second is divided into two types of problems caused by the taxpayer; the third is the transition period to bring the issue of VAT concessions; Fourth, the problems caused by the patch policy; Fifth transitional problems caused by financial subsidies. Meanwhile this paper, Tax Policy to promote SME development in XinJiang, are:(1)expand the "Camp changed by" the scope to expand the scope of deduction;(2) to set a more rich and flexible rates;(3) reduce the general taxpayers, encourage enterprises to improve accounting;(4) increase the service tax preferential policies to promote the optimization and upgrading of industrial structure;(5)specification "camp changed by" government subsidies.