Research On The Impact Of "BT To VAT" On The Financial Performance Of Ningbo Port Company Limited

Business tax and value-added tax are the two major turnover tax systems that have been paralleled since the tax reform in 1994.With the rapid development of China’s market economy and the improvement of the economic system,the shortcomings of the two taxes are increasingly exposed.Since 2012,China has officially launched the “BT to VAT” reform.The tax reform is a step-by-step process.It is another profound reform of China’s taxation system.It aims to reduce the overall tax burden of enterprises,optimize the industrial structure and achieve effective allocation of resources.As a composite service industry,the logistics industry integrates transportation,warehousing,communications and other fields into one,and plays a pivotal role in the national economy.Studying the impact of “BT to VAT” on the financial performance of logistics enterprises is of great practical significance for judging the implementation effect of tax reform and promoting the better development of logistics enterprises.This paper studies the impact of “BT to VAT” on enterprises from a micro perspective.Based on the theory of tax neutrality,optimal taxation theory and tax burden theory,this paper analyzes the direct and indirect effects of “BT to VAT” from the perspective of financial performance.This paper selects Ningbo Port Company Limited as a sample enterprise,and analyzes the financial data of the enterprises before and after the “BT to VAT”,which provides a basis for financial performance impact analysis.Based on the analysis of the direct impact of “BT to VAT” on the financial performance of Ningbo Port,this paper mainly selects 11 financial performance indicators for analysis and calculation from four aspects: profitability,operational capability,solvency and development capability.This paper analyzes the indirect impact of “BT to VAT” on the financial performance of enterprises.This paper mainly studies the changes of tax burden and the deductive effect.Through the research,the paper draws the following conclusions: On the one hand,the profitability of the sample enterprises declines,the operational capacity is enhanced,the solvency is reduced,the development capability fluctuates significantly,and the later stage gradually improves.On the other hand,the tax rate of sample companies has decreased,but the deduction effect has not been fully utilized.In order to cope with the adverse effects of the “BT to VAT” policy on sample enterprises,this paper proposes specific solutions to the problems that arise,including broadening the scope of VAT deduction and rationally planning asset management,strictly dividing the boundaries of business scope and increasing corporate business outsourcing,improving the professional quality of employees and standardizing the company’s invoice management measures,and hope to provide some reference for improving the financial performance of enterprises.