Innovation is the primary driving force for promoting high-quality economic development in China and the main means for enterprises to enhance their core competitiveness. At present, China has introduced a series of financial and tax policies to encourage enterprises to innovate independently and increase their innovation vitality. This article is based on annual data of listed companies from 2017 to 2023, and uses a difference in differences (DID) model to evaluate the impact of the 2019 value-added tax credit refund policy on R&D innovation in production and life service industry enterprises. Research has found that the value-added tax reform has an incentive effect on the research and development innovation of production and life service enterprises. Heterogeneity testing found that after the implementation of the self retention tax rebate policy, the larger the investment scale of the enterprise, the more obvious the innovation incentive effect it receives. This study provides some effective suggestions for value-added tax reform.

Yuan Yidan, Hu Haisheng. The innovative incentive effect of value-added tax retention and refund policy. Academic Journal of Business & Management (2024) Vol. 6, Issue 11: 102-107. https://doi.org/10.25236/AJBM.2024.061115.

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