Research On The Impact Of The Reform Program To Replace The Business Tax With A Value-added Tax On SDS Transportation Group

In recent years, with the rapid development of Chinese economy, industrial upgrading and transformation of the entire economic system are imminent. In order to make Chinese tax system match with the level of economic and industrial development and promote the refinement of the industrial structure and economic transformation, it is the time to put the taxation system reform on the agenda. And the most important step is to implement the change from business tax to value-added tax. Replacing the business tax with a value-added tax is one of the important measure of structural tax cuts since the "Eleventh Five-Year". It helps to avoid double taxation, adjusting the tax structure, improving the tax system to promote economic and social development. The reform of VAT system is another milestone in the history of tax revolution, because of its great meaning for the development of Chinese modern service industry and economy.Since January 1, 2012, part of the modern service industry and transportation have be included in the trial of the reform program to replace the business tax with a value-added tax, which in our country was regarded as the first step of replacing the business tax with a value-added tax program.At the end of August 1, 2013,the reform has extended to the whole country. This article starts with the background of the reform program to replace the business tax with a value-added tax, and is based on the processes and result of the reform program to the transportation industry. It takes SDS Transportation Group as an example. By reading a lot of literature, collecting data and data collation, this paper has calculated how much the tax burden had changed and makes a detailed analysis of the taxation for SDS transportation Group before and after the reform program. The method and conclusion can served as references for the research of changes of tax burden after the reform project in VAT system.From the point of view, the reform of VAT system can not only optimize the tax structure of China, but also solve the problem of double taxation. As the consequence of the tax-reform program, the turnover tax burden and overall tax burden have increased significantly for SDS Transportation Group. And the main reason for the increasing of the tax burden are that the deductible costs accounted for the main business income ratio is too low.In addition,the value-added tax deductible chain is not fully implemented in the whole society. Its own business characteristics are also an explanation for the higher tax burden. In order to lower the tax burden of the transportation industry after the program, the author’s proposals, which are to strengthen the VAT invoice management, have a reasonable tax planning, may can be important ways to reduce the tax burden and tax risks.