Analysis Of The Effect Of The Transformation From Business Tax To Value-added Tax On J Group

The transformation from business tax to value-added tax is an important part of China’s fiscal and taxation system reform.It is the most significant tax reform since 1994.The State Council has decided that,since May 1,2016,China would carry out the pilot work of VAT,which is a pilot project of VAT reform.The pilot scale includes all business tax payers,such as construction industry,real estate industry,financial industry and life service industry,and would be converted from paying business tax to paying VAT.In 2017,in order to create a simple,transparent and fair tax environment,and to further reduce the tax burden on enterprises,the structure of VAT tax rate was reduced from four to third grade.The structural tax cuts,which take the transformation from business tax to VAT as the starting point,have become an important driving force for the transformation of state owned enterprises and the transformation of national economic structure.J group is one of the key state-owned enterprises in a certain city.The company’s dabbling industry includes the four major industries of the comprehensive transformation from business tax to VAT,and nearly half of the taxable income of the enterprise involves the range of transformation from business tax to VAT.The full implementation of transformation from business tax to VAT has brought various influences to the J group.Therefore,the study of the impact of transformation from business tax to VAT on J group not only helps to optimize the financial management of the company,but also provides the basis for the investment decision of the J group,at the same time,it is beneficial to avoid the tax related risk and provide the theoretical value for the sustainable and healthy development of the state-owned enterprises in a city.Based on literature review and literature review,this paper analyzes the impact of transformation from business tax to VAT on enterprises and related tax policy changes.At the same time,in order to fully understand the impact of transformation from business tax to VAT on the J group,this paper has carried out special research and discussion on J group and subsidiaries,and on the spot understand the organization structure of J group,group production and operation,enterprise management,investment and financing mode and so on.The data of tax burden change,profit impact and the difference of financial accounting methods before and after the J group’s transformation from business tax to VAT is carding out in detail.The impact of transformation from business tax to VAT on J group’s tax burden,profits and financial accounting is emphatically analyzed.The enterprise managers are asked to understand transformation from business tax to VAT to promote the transformation of the business model,as well as the views of the J group financial personnel on the complete situation of the related policies.According to the detailed analysis of the changes of the related indicators before and after the transformation from business tax to VAT,from the reconfiguration of the procurement system,the improvement of the internal process and other related measures taken by the J group after the transformation from business tax to VAT and the problems produced by the various industries in the process of transformation from business tax to VAT,the influence of the transformation from business tax to VAT to the J group is contrasted,and the financial management and the optimization of the tax collection are put forward.It is effective and reasonable to draw up and improve the management consciousness of VAT invoices.