Can the VAT Credit Refund Promote Corporate Innovation? Evidence from the National Tax Survey Data of China

Can the VAT Credit Refund Promote Corporate Innovation? Evidence from the National Tax Survey Data of China | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Can the VAT Credit Refund Promote Corporate Innovation? Evidence from the National Tax Survey Data of China Zhenxiong Huang, Jingjing Yang, Mingyong Lai This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-4763214/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This study uses the value-added tax deduction and refund policy implemented in China in 2019 as a quasi-natural experiment, establishes a double-difference model, and empirically examines the impact of value-added tax deduction and refund policy on enterprise innovation. The benchmark regression shows that, on average, the value-added tax retention and refund policy increased the innovation capability of enterprises by approximately 20%. In terms of the mechanism of action, the research results indicate that value-added tax retention and refund policies promote enterprise innovation by enhancing the risk-taking ability of enterprises and reducing their awareness of economic policy uncertainty. Heterogeneity analysis found that the innovative incentive effect of value-added tax retention and refund policies is more evident in high-tech, manufacturing, private, and large- and medium-sized enterprises. This study provides policy recommendations to improve the pertinence and tax neutrality of value-added tax deduction and refund policies, construct a normalized mechanism for value-added tax deduction and refund policies, and improve the collaborative tax credit mechanism for enterprise financing and credit enhancement. Uncredited VAT Refund Reform Corporate Innovation Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-4763214","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":338759863,"identity":"956dac9f-abf9-492f-be1a-26c56b23f2b9","order_by":0,"name":"Zhenxiong Huang","email":"","orcid":"","institution":"Hunan University","correspondingAuthor":false,"prefix":"","firstName":"Zhenxiong","middleName":"","lastName":"Huang","suffix":""},{"id":338759864,"identity":"12a657f1-7060-4243-8320-91814d719e68","order_by":1,"name":"Jingjing Yang","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA30lEQVRIiWNgGAWjYBACAxCRUGHDw89w+MCBDxXEanlwJk1GsvFY4sEZZ4jUwviw7bCNweEzxod5W4jQYs7e/OxDYtthHoZjZz4c4G1gkOcXO4Bfi2XPMeMZCefSeRh7zm44ILmDwXDm7AQCDruRYMyQUGbNwywB1GJ4hiHB4DYhLfeff2ZIYGPmYZN/8+BAYhsxWm7wAG1pc+bhYTjDcOAgMVose3KKGRLOpPFIMBwzONhwRoKwX8zZj29m/FFhY29/4PDjz38qbOT5pQloQQcSpCkfBaNgFIyCUYAdAADybU1JuRZ3lgAAAABJRU5ErkJggg==","orcid":"","institution":"Hunan University","correspondingAuthor":true,"prefix":"","firstName":"Jingjing","middleName":"","lastName":"Yang","suffix":""},{"id":338759865,"identity":"f2a83c55-8a88-4e41-be11-c6e3831a14dc","order_by":2,"name":"Mingyong Lai","email":"","orcid":"","institution":"Hunan University","correspondingAuthor":false,"prefix":"","firstName":"Mingyong","middleName":"","lastName":"Lai","suffix":""}],"badges":[],"createdAt":"2024-07-18 14:14:32","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-4763214/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-4763214/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":68058145,"identity":"bf27aa83-0248-4a4e-b0c2-6638ef85474e","added_by":"auto","created_at":"2024-11-02 03:16:52","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":796153,"visible":true,"origin":"","legend":"","description":"","filename":"manuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-4763214/v1_covered_0bc44bb3-4ddf-4321-9485-9e8e358f41e5.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Can the VAT Credit Refund Promote Corporate Innovation? 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