The Research On The Impact Of The Testing Service Enterprises Tax Changes For The Business Tax Into VAT

As the modern high-tech services of the main pillar of the economy in our country,testing services enterprises play an important role on China's economic transformation with its high technology,upgrading of strong innovation ability and huge market potential.Since January 1,2012,certification and consulting services were included into the pilot range of transformation of Business Tax to VAT.Therefore,the changeable taxing treatment will have an impact on the tax burden,financial management,business decisions and other aspects of testing service enterprises.Under this background,this paper selected CTI company,a private comprehensive testing services mechanism as a case study to analyze the influence of the “replacing business tax with VAT” combining its own characteristics by using the relevant financial data of the company.Firstly,this paper introduces the development status and the characteristics of the testing service industry as well as describing the basic situation of the CTI company and the influence of revenue and cost after transformation.Secondly,estimates the turnover tax burden with before and after “replacing business tax with VAT”of the CTI company by using its financial data from 2008 to 2015,and the tax burden dropped apparently resulting from the change of the cost and the fixed assets investment.Besides that the article also analyzes the “replacing business tax to VAT” impacted on the company's net profit and management,puts forward the viewpoint that the tax reform may arise tax risk after transformation.Finally,In order to optimize the financial management,the company should do well in fixed asset management planning,strengthen the input tax deduction management and pay attention to the prevention of tax risk according to the situation of the company and the comprehensive “replacing business with VAT”.