The Financial Impact Of "Reform Of Replacing Business Tax With VAT" On Financial Leasing Industry

Financing leasing is a new economic form,which integrates financing and financial products.It accelerates the renewal of enterprise equipment.Since 2012,the State Administration of Taxation has included the financial leasing of tangible movable property in the pilot scope of the reform of business tax to VAT,and in the further reform of business tax,the financial leasing industry has also been involved.Replacing business tax with VAT improves the deduction chain of the financial leasing industry,reduces the tax burden of the whole industry,and promotes the fairness of the tax system.However,from the point of view of a single financial leasing enterprise,the increase of business transformation has brought certain impact on business income,business cost,tax burden,tax and additional,cash flow and so on.This paper reviews the relevant literature on the necessity and impact of " replacing business tax with VAT " and finds that most scholars previously studied the impact of replacing business tax with value-added tax on construction,catering and other industries,while few scholars studied the impact of "replacing business tax with value-added tax" on financial leasing industry.With the development of financial leasing industry,new problems have been exposed in business practice.The state has full played the macro-adjustment role of taxation and issued a series of fiscal and tax policies.This paper sorts out the relevant policy changes of "replacing business tax with VAT",qualitatively analyses the impact of these two tax reform policies on the financial leasing industry,and intuitively analyses the problems and causes in the implementation of "replacing business tax with VAT" from the perspective of tax burden,financial indicators and other financial perspectives.The following conclusions are drawn.Firstly,"replacing business tax with value-added tax" promotes the taxation fairness,perfects the VAT deduction chain,avoids the financial leasing business double taxation;Secondly,"replacing business tax with value-added tax" increases the tax burden of financial leasing enterprises,but fails to achieve the purpose of reducing the tax burden of enterprises.Thirdly,the accounting of financial leasing enterprises after replacing business tax with value-added tax is more complicated.Fourthly,"replacing business tax with value-added tax" has raised the asset-liability ratio of financial leasing enterprises.Fifthly,"replacing business tax with value-added tax" reduces the operating income and operating cost of financial leasing enterprises.Sixthly,"replacing business tax with value-added tax" causes the cash outflow of "various taxes paid" by financial leasing enterprises to increase.Based on the above analysis,the following Suggestions are put forward: appropriately reducing the VAT rate,further improving the VAT deduction chain,increasing the intensity of tax collection and refund,simplifying the tax refund process,adjusting the business structure,and increasing the level of financial management.