Research On The Impact Of VAT Reform On Export Trade

"Business Tax Replaced with VAT Reform" is an inevitable requirement arising from the development of China’s market economic system and the reform of the taxation system.This policy has a more or less impact on the development of all walks of life,which includes export trade as one of the three carriages of China’s economic development.Export trade has always been an important driving force for China’s economic development.Export trade has developed rapidly for a long time.But as the trading system matures,the problems are beginning to show up.The structure of export trade is unreasonable and the technical content of exports is not high comparatively.The development of export trade encounters bottlenecks.The implementation of "Business Tax Replaced with VAT Reform" has provided new opportunities for the export trade of Chinese enterprises.This paper makes a detailed analysis of the various impact mechanisms of VAT reform on export trade.After VAT reform,the scope of export tax rebates for service trade expanded,and VAT reform also had the effect of deducting tax reductions,effectively reducing the cost of export of service trade and increasing export profits.On the other hand,VAT reform has played an important role in the internal management of enterprises by promoting specialized division of labor and enterprise R&D,which has effectively enhanced the competitiveness of export products and improve export trade.On the basis of product heterogeneity trade model,this paper constructs a model of the effect of VAT reform on export trade and proposes relevant hypothesis.This paper conducts an empirical test based on the data of relevant listed companies in China.Empirical results show that VAT reform effectively promotes the expansion of enterprise’s export trade scale,improves the efficiency and quality of export trade and increases the enthusiasm of enterprises to participate in exports.This paper further analyzes the impact of VAT reform on companies of different natures.Due to the existence of the deductible chain,the enterprises with high intermediate investment will get more promotion from VAT reform than the enterprises with low intermediate inputs.State-owned enterprises and private enterprises have different sensitivity to tax policy,which makes private enterprises benefit more from VAT reform.Due to the differences in the main targets of VAT reform,the impact of the export of service industry and manufacturing industry on VAT reform is also different.The export promotion effect of the service industry is more significant.Therefore,VAT reform is helpful to improve the export structure of our country.Finally,based on the theoretical analysis and empirical results,combined with the actual situation of China’s development,this paper gives some feasible suggestions from the government and enterprise levels.