The Influence On The Modern Service Industry Of The Transform From Business Tax To VAT

Since the "modern service industry" was first mentioned in the report of the 15 th session of the National People’s Congress, it’s our main goal of our country to enhance the international competitiveness of the modern service industry. The modern service industry have three characteristics, including high-tech-intensive, high-knowledge-intensive, low energy consumption and low pollution features. Its development level is an important criterion to measure a country’s level of economic and social modernization. In the background of “business tax to value-added tax”, this article has a research on the impacts of “business tax to value-added tax” to the modern service industry.This article introduces the connotation of the modern service industry and its important role in economic development. This article explains several important points in time and scope of “business tax to value-added tax” of the modern service industry. The article focuses on the positive impacts of “business tax to value-added tax” to the modern service industry. First, the policy helps improve the value-added tax chain, elimination of double taxation, reduce the corporate tax. This article analyses the effect of the policy to the modern service industry from the general taxpayers and small-scale taxpayers’ view. Secondly, the policy brings a positive development effects to the enterprises. The policy helps enterprises to speed up the updating equipment; increases the company’s outsourcing services; accelerates industrial integration, promotes service innovation, and actively promotes the expansion of overseas business, accelerates the development of trade in services. Finally, the policy helps enterprises economic restructuring, including the adjustment of the economic structure, promoting enterprises to expand business scale and the emergence and development of new industries. Then we analyze the problems of the reform. Including the increasing of some enterprise tax burden, and decreasing of local fiscal revenue and so on. We put forward some countermeasures for the problems. Including the elimination of double taxation, and improve the chain of VAT deduction. And,this article put forward some policies including coordinating the relationship between central and local financial interests, reducing the standards of general taxpayer, reducing VAT rate level, improving the functions of the tax authorities and the collection and management level.2015, China will continue to promote the reform of “business tax to value-added tax”. The ultimate goal will implement VAT full replacement of business tax. This is a round of major reforms of the tax system, its impact on our society and economy is very great. The reform is an opportunity for the modern service industry. The current round of reform will significantly improve the competitiveness of China’s modern service industry, is conducive to the development of tertiary industry, and contribute to the ultimate goal that build China into a service country.