The Impact Of Transformation From Business Tax To Value-added Tax In Modern Service Sectors

The transformation from business tax to value-added tax (VAT), which comes after the reform program of fuel tax, is a vital step of China’s reform of the tax and fiscal systems. According to the reform, the transport sector and certain modern service sectors which paid business tax before, will pay VAT, the reform is intended to perfect the scientific development tax system, promote adjustment of economic structure and upgrade of business sectors, provide strong impetus for accelerating the economic development of our country. The reform program was first introduced in Shanghai and was later expanded to go nationwide, as well as transport and certain modern service sectors, the program will be expanded to radio, film and television industries. The reason why choose modern service sectors is because:first, modern service sectors are an important part of national economy, its development level is an important index to measure the development level of social and economic, the accelerated development of modern service sectors lead to not only the transformation of pattern of economic development, the adjustment of economic structure, but also the expanded domestic demand and new economic growth point; second, the present institution of business tax and VAT brings serious repeated taxation to modern service sectors, and sets limit to it in some aspects as division of labor among enterprises, industrial convergence, international transfer, tax burden, so that it is necessary to solve these problems via the reform program; third, modern service sectors has an close relationship with manufacturing and other sectors, the reform program in modern service sectors, is not only beneficial to promote the development of modern service sectors, but also to promote the development of manufacturing and other sectors.At present, the transformation from business tax to VAT in modern service sectors has entered in a crucial stage and deep water area, involving deeper adjustment of profit distribution structure and more difficult problems, through the analysis of the impact of the reform program, found the key sectors and crucial links, the reform program can provide impetus to the country’s development. Based on the existing research on transformation from business tax to VAT in modern service sectors, this text try to integrate the views of other scholars in order to perfect the reform program and help further reform through analysis of impact on modern service sectors, the achievements and the existing problems. So, this text is expounded from four parts. Part one, introduction. This part introduce the research background and significance, an overview of research progress both domestic and abroad, the main content, research methods, innovations and deficiencies. Part two, the background of transformation from business tax to VAT in modern service sectors. Firstly, introduce the background of the reform, on the one hand, there is a relationship between business tax and VAT, which provides a theoretical basis, on the other hand, the present institution of business tax and VAT has an adverse effect on the development of modern service sectors, which provides a realistic request. Part three, the impact analysis of the transformation from business tax to VAT in modern service sectors. In this part, this text tries to analyze the micro and macro impact of the transformation from business tax to VAT in modern service sectors. Micro analysis explores the impact form theoretical angel and positive angel with input-output analysis method and tax burden index system; macro analysis explores impact on industrial structure from supply of production factors, domestic demand and international trade. Part four, institution selection and policy suggestion of transformation from business tax to VAT in modern service sectors. According to the theoretical analysis and actual operation of the reform program, this text tries to put forward policy suggestion from three aspects, firstly, define tax base, to be more specific, it’s the certain sector of modern service sectors., secondly, define small-scale taxpayer and general payer reasonable, thirdly, implement combine tax system at proper time.The research methods adopted by this text consist of theoretical analysis and demonstration analysis, qualitative analysis and quantitative analysis, input-output analysis. The possible innovation points in this text are:firstly, with comprehensive academic research of the reform, this text define the modern service sectors, and on this basis, discusses the necessity of transformation from business tax to VAT in modern service sectors; secondly, from both micro and macro angles, make a systematic summarize of impact on modern service sectors, and put forward policy suggestion. The shortages in this text are:firstly, due to the shorter time, it is difficult to collect enough data and carry on deeper research; secondly, due to the shortage of theoretical knowledge and practical experience, the conclusion of impact analysis of the transformation from business tax to VAT in modern service sectors remains to be testified in practice.