Research On The Impact Of VAT Retention And Refund On Enterprise Innovation In China

The report of the 20 th National Congress of the Communist Party of China clearly pointed out that innovation is the primary driving force,and we must adhere to the innovation-driven development strategy.As the main body of national innovation,the improvement of independent innovation ability of enterprises is the key to implementing the innovation-driven development strategy.The source of power to achieve high-quality development is scientific and technological innovation,and how to use fiscal and taxation policies to effectively stimulate enterprise R&D and innovation is a hot issue in theory and practice today.Prior to the implementation of the VAT retention and refund policy in 2018,neither the full implementation of the VAT reform in 2016 nor the subsequent reduction of the VAT rate involved VAT retention and refund.Therefore,the implementation of the VAT retention and refund policy in2018 is of great significance to enhance taxpayers’ enthusiasm for paying taxes,optimize the business environment,promote enterprise innovation,and promote the transformation of China’s economy from high-speed development to high-quality development.The thesis focuses on the impact effect of VAT retention rebate on technological innovation of Chinese enterprises and its mechanism of action.Firstly,the impact of tax incentives on enterprise innovation and the economic effects of VAT retention and refund policies are sorted out and summarized.Secondly,the institutional background of VAT retention and refund is further elaborated,and the following research hypotheses are proposed on the theoretical basis.Then,taking the release of Cai Shui[2018]No.70 as the research background,this thesis mainly uses the double difference method to research the impact of VAT retention and refund on the technological innovation of Chinese enterprises,based on the relevant data of listed companies from 2012 to 2019.At the same time,robustness tests and heterogeneity analyses were carried out for the research conclusions,such as parallel trend test,exclusion of fiscal and tax policy influence in the same period,placebo test,tendency score matching and replacement of explanatory variables.On this basis,the following research conclusions are drawn: First,the VAT retention and refund policy has significantly increased the investment of enterprises in R&D and innovation.Second,compared with state-owned enterprises,the VAT retention and refund policy has a greater impact on the R&D and innovation investment of non-state-owned enterprises.Third,compared with small-scale enterprises,the VAT retention and refund policy has a greater impact on the R&D and innovation investment of large-scale enterprises.Fourth,compared with non-manufacturing enterprises,the VAT retention and refund policy has a greater impact on the R&D and innovation investment of manufacturing enterprises.Through mechanism testing and analysis,it is concluded that VAT retention and refund can also improve the company’s financial pressure,increase the company’s capital flow,and promote the company’s research and development efforts.Finally,based on the research conclusions and actual situation of the empirical analysis of the thesis,the following policy suggestions are put forward: The first is to optimize the VAT retention and refund policy.The second is to deepen the reform of the value-added tax retention and refund system.The third is to actively simplify tax rates.The fourth is to improve the tax collection and management system.The fifth is to improve the working mechanism of VAT retention and refund.The sixth is to increase the preferential incentives for VAT retention and refund policies.