Research On The Impact Of The Reform Of The Camp On China's Catering Industry

Since May 1,2016,comprehensively replacing the business tax with a value-added tax(VAT)in China has already been completed.The construction industry,real estate,finance,life services,these four industries are also included in the scope of the taxation of VAT,which also included the catering industry under the category of life service industry.What is the impact of VAT on the catering industry and how the catering industry should make corresponding decisions has become an important subject in academic and industrial fields.The paper is divided into five parts.First of all,in retrospect of the relevant literature domestic and abroad,the author found that existing researches focused much more on the macro level.There are few papers that analyze a specific company for case study.Based on the above background,this paper will study the subject from the perspective of enterprise and analyze the influences of VAT on the tax bearing and operation management.Secondly,this paper makes the relevant theoretical analysis.On the basis of theoretical analysis,the author focuses on the study of business case.It analyzes the income and expenditure of the enterprise,and calculates the amount of tax payment that the enterprise pays after the VAT.At the same time,the author deduces the due business tax before the VAT.After comparison and analysis,it is concluded that the tax will be reduced after transforming the business tax to VAT.The urban construction tax and education surcharge will be reduced,too.To what extent that a corporate tax burden can be reduced depends on the amount of the deductible VAT invoice that an enterprise can obtain.As a result,enterprises will tend to choose the suppliers who have large scale business and can issue special VAT invoice.In order to reduce costs,the enterprises would like to consider employing retired soldiers and laid-off workers in the recruitment process,which is beneficial to the standardization of the management of the invoice.On this basis,the author make suggestions for the catering business so as to better adjust to the change of tax policy.