Study On The Influence Of The VAT Reform In Manufacturing Enterprises On VAT Burden

To adapt to quickly economic development,China has implemented a proactive fiscal policy and taxation reform.All these measures are aimed at perfecting the VAT system in China,reducing the burden of enterprises and promoting the development of enterprises.One of the major initiatives is the VAT Reform.The significance of the implementation is to eliminate the drawbacks of double taxation,improve the offset chain of value-added tax,promote the division of labor and specialization of the industry,and integrate the secondary and tertiary industries.In addition,this reform has brought opportunities for China's traditional manufacturing industry.It encourages these companies to reform,innovate and increase investment in R&D to encourage enterprises to improve their competitiveness.As a pillar industry of China's economic growth,manufacturing industry has experienced rapid development for decades.Although its output value has leaped to the top in the world,the development of manufacturing industry also faces many problems,such as products with low added value and too heavy tax burden,increasing costs,etc.As one of the important expenditures of manufacturing companies,the tax burden has a far-reaching impact on the development of manufacturing.The tax burden of Chinese manufacturing companies has been high all the time.The VAT Reform has brought good news to other various industries.Although the policy does not directly target the manufacturing industry,it has a far-reaching impact with the flow of the industrial chain,and people from all walks of life are particularly concerned about the benefit that the manufacturing industry will get in the reform and the development of the industry.The effect of reform has attracted worldwide attention,at the same time we also cannot ignore that it produces other economic effects,such as indirect influence on enterprise's business structure,and it further affects the VAT burden,the business structure of an enterprise is an important part of business decision.This article uses literature research,case analysis and other methods to explore how the policy affects the business structure of the manufacturing enterprises,then affecting the VAT burden.First,it reviewed in detail the progress,significance,and effects to the gradual implementation of the policy,described the development of the manufacturing industry,and the status of the tax burden,and explained the significance of this article;then it summarized the reform through domestic and foreign literature review.The existing research results and deficiencies such as the tax-reduction effect brought about by the policy,other economic effect and the actual changes of the tax burden in various industries;then,the theoretical basis for the role of the policy in taxation will be discussed,and the reform of the manufacturing industry will be discussed.Analyze the theoretical route of the transmission path that impacts the policy on business structure and the VAT burden;according to theoretical analysis,introduce a specific case to see the taxes changes of manufacturing companies and analysis of the internal causes of the changes,and it leads to the following conclusions: 1.The VAT burden will slightly decrease after the reform;2.The reform has an impact on the business structure and promotes the servitization of manufacturing.3 To a certain extent,the policy will encourage manufacturing companies to outsource non-primary functions,rationally adjust the operating structure,and increase the internal resource utilization rate of the company;4.When manufacturing companies include multiple tax rate services,the VAT burden is negatively correlated with the business tax rate diversification.Increasing the businesses whose tax rate is 6% can reduce their tax burden.Although the degree of reduction is not significant,the policy encourages diversification of the business and acts on the reduction of VAT burden.In consideration of the factors,the company's development should be transformed into a service-oriented manufacturing industry;Finally,from the perspective of the case enterprise,this paper proposes how the reform can reduce the VAT burden in manufacturing companies and proposes specific measures to properly respond to the impact of the policy,so that manufacturing companies can benefit from it,to promote better and longer-term develop.