Study On Effect Of Business Tax To Value-Added Tax On Some Of Modern Service Industry

According to the plan of the Fifth Plenary Session, the determination of theTwelfth Five Year Plan on tax transformation and the requirement made by PremierWen Jiabao in2011government work report, in the year of2011, the StateAdministration of Taxation Bureau, the Ministry of Finance and other relevantdepartments announced that the tax transformation from business tax to value-addedtax would start very soon. Specifically, since January1,2012, in Shanghai which isknown as the core of the service and the financial sector, some categories includingthe transportation industry and some of the service industry started to conduct taxtransformation at first. Then from August1,2012to the end of the year, the number ofthe areas involved was expanded to ten. Also since August1,2013, the scope of thearea mentioned above was extended to all regions within the country. As approved bythe State Council meanwhile, the industries involved referred to transportationindustry and service industry, which was so-called "1+7+2" mode, in details,"1" wastransportation industry,"7" was some of the service industry, and "2" was railwaytransport and postal services.This study combined with the background for tax transformation, firstly makescomparison on the main tax concerns before and after tax transformation policyimplementation, then further explore the impact on some of the modern serviceindustry and trade issues. And the study pays attention to the combination of theoryand practice, which briefly introduces the macro tax theory and micro business taxtransformation adding some current researches, and focuses on the actual operationproblems, in order to conduct analysis on the influence of transformation on some ofthe modern service industry. Finally, it is hoped that the study will facilitate the pilotenterprises understand the basic tax theory, and provide some guidance or referencefor their practical tax operations.