Effects Of VAT Reform On Tax Burden And Business Performance Of Cultural And Creative Industries

As the most significant tax reform policy in recent years,the effects of VAT reform on China' s economy is profound.The cultural and creative industry has always been regarded as the key field of the national competition on the soft power and one of the most promising sunrise industries in the 21st century.In particular,under the background of China's development entering the "new normal" economic,cultural and creative industries with innovation,low pollution,and low energy consumption may become the next strategic and pillar industries in China,which will bring about the next growth point for China's economic development.As far as I am concerned,we should take VAT reform as an essential opportunity to optimize cultural and creative industries.In order to comprehensively analyze the effects of VAT reform on the tax burden and business performance of cultural and creative industries,this paper theoretically discusses the influence mechanisms of whether and how VAT reform affects the corporate tax burden and business performance.Then using company-level half-yearly unbalanced panel data from 2011 to 2017 and a DID model with multi-groups and multi-periods to conduct empirical tests,we find that the average treatment effects of VAT reform reduce corporate total tax burdens and improve business performances of cultural and creative enterprises of general taxpayers.Furthermore,VAT reform shows heterogeneity between different corporates with different intermediate input rates and different labor input rates.In the last part,this paper gives advices for VAT reform from the government level and the corporate level,in the hope that cultural and creative industries can benefit a lot from VAT reform furtherly.