A Study Of Financial Position-on The Modern Service Industry-of Replacing Business Tax With VAT

Substituting business tax with value-added tax is once again after VAT reform of major reform.Its essence is to put the original pay business tax industry into the scope of VAT.Business tax on the original as a tax in our country which shortcomings appeared gradually along with its implement,especially for some industries.With the continuous transformation and upgrading of modern service industry,the business tax is the tax system defect brought a resistance to the development of modern service industry.Modern service industry not only refers to the catering,the lodgings,the traditional service industry of real estate,education,etc,but also including the technical service and knowledge service,research and development services,communications technology services,consulting services and logistics support services.In January 2012,the modern service industry chose Shanghai as the first pilot to implement "Replacing business tax with value-added tax" policy,then extended to Beijing,tianjin,ningbo,xiamen,shenzhen and other places.In due course will be introduced to the value-added tax services and promoted in the national scope,which can effectively avoid double taxation.It is of different degrees of positive significance to refine the industry division of labor,promote the development of modern service industry and optimize the tax structure.But there are also many problems in the tax system reform,such as reforming effects varies a lot in different industries,which resulting in some industries tax burden increases unexpectedly.For modern service enterprises,as the process of economic globalization,the modern service industry is in a golden opportunity of development in our country and is moving toward to professional refinement,fusion penetration rate between industry and development of new type and international business direction.The characteristics of modern service industry are typical labor-intensive industries,while the implementation of "replacing business tax with value-added tax" will pay attention to labor cost.The reform is of great significance to this.Its beneficial to modern service industry to achieve the goals of industrial upgrading,structural transformation,promote the whole service JiJuXing scale formation and enterprise to improve financial management ability.At the same time,the tax reform in line with the financialization of service and economic development trend makes our country's tax policy more internationalization and modernization.Its helpful for enterprises to carry out the strategy of going out,to achieve better and faster development and progress.Therefore,it is necessary and important to carry out "replacing business tax with VAT" in modern service industry,and it is worthy of further study and discussion.Hence,this paper using the theory of tax neutral and tax burden on theory and the optimal tax theory,the research on domestic and foreign scholars have on the basis of systematic review,combined with the background of transition of economic system in China,using case analysis and comparative analysis,studies the reform influence of the financial condition on the modern service industry taking the East Guosen Technology as an example.The results show that "replacing business tax with value-added tax" can bring a series of benefits to the modern service industry,highlighting the fact that :(1)"replacing business tax with value-added tax" can reduce the tax burden of service companies.(2)"replacing business tax with value-added tax" can promote the improvement of performance of service companies;(3)"replacing business tax with value-added tax" can enhance the core competitiveness of service companies;(4)"replacing business tax with value-added tax" can improve the management level of service companies.However,in spite of these,the following problems are also appeared in the implementation of "substituting the business tax with value-added tax" to the enterprise: First,it increases the difficulty of tax planning;Second,it increased tax risks;Thirdly,it makes it more difficult to issue special VAT invoices;Fourth,the operation in practice is not perfect.Through the research on the the East Guosen Technology financial condition influence and the analysis of difficulties during the process of the implementation,this paper argues that we can take measures to improve the tax reform from the following several aspects: First,improve the financial management system;Second,improve the level of information management;Third,adjust business strategy;Fourth,reduce the standard of general taxpayer identification;Fifth,improve the local taxation system further.This paper's research has important practical significance for modern service enterprises to fully understand the policy dividend brought by national implementing the reform,enhance enterprise core competitive ability,promote the development of service industry and the improvement of the tax policy as well.