The comparison before and after the VAT reform is as follows:

The VAT reform refers to a major tax reform implemented by the Chinese government on April 1, 2016. Prior to this reform, value-added tax (VAT) and business tax (BT) existed in parallel for Chinese companies.

VAT is a tax based on the value added of goods and services, while business tax is a tax based on the sales of a business. The purpose of replacing VAT with VAT is to promote economic development and reduce the burden on enterprises by abolishing business tax and bringing all industries into the scope of VAT.

Prior to the implementation of the VAT reform, there were differences in tax burdens between different industries. Some industries have higher business tax rates, resulting in a compression of corporate profits. In other industries, the business tax rate is lower, so that enterprises in these industries can enjoy tax incentives. This differentiated tax burden has an unfair impact on the development of enterprises and is not conducive to the optimal allocation of resources.

The implementation of the VAT reform has eliminated the difference in tax burden between different industries and achieved fairness and uniformity in taxation. According to the principle of replacing business tax with value-added tax, all industries are taxed at a flat VAT rate. In this way, the difference in tax burden between different industries is eliminated, enterprises can compete more fairly, and resources can be allocated more efficiently.

The impact of the VAT reform on different industries is different. Taking the catering industry as an example, the catering industry was a business tax payer before the VAT reform, and the tax rate was 5%.

After the VAT reform, the catering industry was changed to a value-added tax payer, with a tax rate of 6%. Despite the increase in the tax rate, the actual tax burden on the catering industry has not increased, and may even be reduced, as VAT can be deducted from input tax. In this way, enterprises in the catering industry can enjoy more tax incentives, which is conducive to the development of the industry.

Another example is manufacturing. Before the VAT reform, the manufacturing industry was a VAT payer, with a tax rate of 17%. After the VAT reform, the tax rate for the manufacturing industry remained at 17% and remained unchanged.

However, since the VAT can be deducted from the input tax after the VAT reform, the actual tax burden on the manufacturing industry has also been reduced. For the manufacturing industry, this means that more funds can be used for technology research and development and the upgrading of production equipment, which helps to improve the competitiveness and innovation ability of enterprises.

Overall, the implementation of the VAT reform has had a positive impact on all walks of life. By eliminating the difference in tax burden between different industries, the VAT reform has achieved fairness and uniformity in taxation and promoted the optimal allocation of resources. The tax incentives of replacing business tax with VAT also provide more room for development for enterprises, which helps to improve their competitiveness and innovation capabilities. With the continuous advancement of the VAT reform, it is believed that China's tax system will be further improved to provide stronger support for the sustainable development of the economy.