The Impact Of Value Added Tax On Logistics Service Supply Chain

For some practical reasons,the tax costs of some logistics enterprises have been increasing since the policy of raising value added tax(VAT)on transportation industry has been implemented on the end of 2011.To solve these problems,at first we describe the status quo of the China highway logistics industries and the implementation of VAT tax reform act.Then,we build different decentralized logistics service supply chain(LSSC)models under business tax and value added tax respectively,and verify these problems through numerical analysis.We introduce buy-back contract to the LSSC model,which indicates the tax burden under LSSC model with buy-back contract is lower than decentralized LSSC model.At last,this paper exposes the truth of the tax burden on transportation industry will be increase if the VAT policy is implemented under today's tax system.However,as the difficulty of obtaining VAT invoices become more easily,and the range of deductible cost become larger,and the VAT rate goes down,the tax burden on transportation industry will drop off;in addition,build strategic cooperation between logistics service integrator and logistics service providers also can reduce the tax burden of the logistics industries.