A Research On The Influence Of “Replacing BT With VAT” On Life Service Enterprises And The Countermeasure Of Tax Planning

In the spring of 2016,the State Council Premier Li Keqiang pointed out in his report on the work of government at the People's Congress that this year the replacement of the business tax(hereafter referred to as BT)with a value-added tax(hereafter referred to as VAT)and countermeasure study of tax planning are going to be in full operation(hereafter referred to as “Replacing BT with VAT”).In order to ensure the implementation of the reform effect and truly reduction,the tax reform expanded to four major industries including life services.The pilot of “Replacing BT with VAT” has been comprehensively launched nation widely,ending the coexistence of VAT and BT,getting through the chain of VAT deduction,removing the double taxation,alleviating the taxpayers' burden,promoting the economic growth,transformation and upgrading,which undoubtedly has epoch-making significance in the history of China's tax revenue.Thesis begins with the study background and concludes literature from domestic and foreign scholars,finding out that the tax reform is necessary for life services which pay BT.As a result,the chapter 2 starts from the adverse effects of the coexistence of VAT and BT to analysis the significance of “Replacing BT with VAT”.The chapter 3 sums up the advantages and difficulties of “Replacing BT with VAT” in life service industry and the situation of living services as well as related tax policies.Since the tax reform would have a certain impact on the life services,the fourth chapter elaborates on a series of analysis from several aspects of tax,financial reporting,accounting and invoice management.Because of life services' intimacy to daily life of urban and rural residents and wide range of business,tax and other aspects of the extent of regulation needs to be considered.Therefore,the tax planning of life service enterprises becomes more necessary and practical after “Replacing BT with VAT”.In order to avoid the burden of double taxation,to improve the tax system and to promote the reform of taxation methods,this paper points out case analysis of a few main factors which influence “Replacing BT with VAT'' of life services by camera decision-making model and tax penalty area model of tax planning,especially from taxpayers' angle,sales with tax and input tax allowing deduction,which makes it more direct for us to learn the way of tax planning of “Replacing BT with VAT” of life services and offers some reference to life service enterprises for their tax planning work in the future.And it is hoped to provide recommendations for the following deep development of “Replacing BT with VAT'' of life services.