The Effect Of The Transition From Business Tax To Value-Added Tax On China’s Tourism Industry

Since the 1994 tax system reform, China has established the basic structure and main double taxation of turnover tax and income tax, value added tax and business tax belong to the circulation tax, two tax is different in the collection of the object, the scope of Taxation, tax basis, tax rate, tax collection and management mode. Value added tax business tax, tax system design more reasonable and more perfect, the two tax on taxable income is very different, the business tax on all taxable income taxable business income tax, and the way of tax value added tax is more value-added part of total business income as the tax basis, is the commodity or service value added tax rate levied by simply, value added tax and business tax are indirect tax, the actual tax burden is not the taxpayer, the tax is the undertaker of businesses or individuals to buy the goods or services, all of the goods and services each transfer of a link, the tax burden will be shifted, tax the duty to shifting the tax by increasing the prices of goods and services and other ways. Value added tax business tax is the biggest advantage of the upstream businesses pay value added tax in the downstream enterprises as the input tax deduction, eliminates the problem of double taxation of business tax, business tax plan tax basis is all taxable turnover or all taxable service price, taxable goods or taxable services will be levied a tax in every flow or the sales link, link more taxable goods or taxable service circulation or sales, the tax burden is heavier, and distribution or sale of every price increase the tax burden will increase with the total price. Business tax the step growth tax burden tax already can not adapt to the current development of the domestic economy, and seriously influence the transformation and upgrading of the third industry development in China and the country’s industrial structure is a pressing matter of the moment, the optimization of the industrial chain to eliminate the circulation of goods and services tax levied duplication problem, under this background, according to the spirit of the party’s seventeen third plenary session, the business tax and VAT tax reform in December 1,2012 started a pilot.Business tax reform in order to adapt to China’s modern economic development, adjusting the economic structure, improve the tax policy under the background mentioned, is an important part of China’s structural tax cuts, the business tax with value-added tax reform, the purpose is to eliminate the double taxation of business tax problems existing at present, and take according to the characteristics of different industries with different tax rates for high-grade optimization of industry chain to promote the upgrading of the industrial structure. Business tax VAT is from the reform of the tax system to solve the problem of double taxation of business tax in the demonstration effect of domestic pilot areas the significance, at the same time, before the third industry business tax VAT deduction chain are all included in the scope, provide more favorable opportunities for development and a more relaxed environment for industrial chain optimization and tax the industrial structure of the third industry upgrade. Tax policy is a lever of economy, business tax VAT is the country’s macroecononmic financial means, through the adjustment of tax policy to implement the structural tax cuts, reduced operating costs by third industry tax burden of tax policy, increase profits for enterprises with more sufficient funds for investment and development. The third industry of our country to promote the upgrading of the industrial structure and optimization of industrial chain integration. The institutional reform of the business tax on the fundamental of imminent. The third industry in the collection of business taxes levied repeated tax problem has always been there, along with the third industry and the integration of the transformation and upgrading of the business tax, double taxation problems will hinder the development of the third industry and the growth of. In 1985 our country defines the scope of the third industry, based on the distinction between GNP statistics, the National Bureau of statistics put forward "on the establishment of third industrial statistics report" to the State Council, the third industry which is divided into four parts:one is the circulation department:transportation (including road transport and water transport) auxiliary, logistics, warehousing, postal and telecommunications industry and the catering industry; the two is for the production and service sectors:tourism, real estate, finance and insurance industry, geological survey industry, information consulting services industry, public utilities, resident services and technical services; the three is to improve the scientific and cultural level and the quality of residents service sector:education industry, culture industry, broadcasting, television industry, scientific research, health industry, sports industry and social welfare; the four is the state organs, political parties, social organizations, the police, the army, but in the country is not included in the third industrial output value and gross national product. Thus, the third industry is a service industry.Tourism as an important part of the third industry, beginning in twentieth Century 90 years, tourism industry has maintained a momentum of rapid development of stable, economic benefits beyond the oil industry and the automotive industry has become a pillar industry of the first integrated in the world economy. According to the World Tourism Organization Business Leaders Forum released "2013-2023 tourism economic impact report" that, along with the development of the tourism industry and the integration of world economy, the growth of the world economy faces many challenges and uncertainties, tourism with its high-speed stability, promote economic and employment advantages of the industry attracted worldwide attention, the group is expected in the next 10 years, the world tourism related industries can increase 70000000 jobs, is expected to contribute to the world GDP production rate of up to 5.1%, the total amount: 10 trillion dollars. Our country from a big tourism country become powerful tourism tourism development strategy, we should analyze the process and main trend of tourism development around the world began, the core content is to upgrade the international competitiveness of tourism industry and its related industries through the industrial structure, vigorously develop the tourism industry to improve the proportion of the third industry in our country has been in the economic output an urgent demand. Business tax is levied on the taxable services unified China for tourism, business tax tax system defects in conflict with itself and the tourist industry of our country in international business, labor and industry development trends and business model differentiation. Business tax reform, tax reform is the effect of structural tax cuts, in order to create a tax environment for fair competition for enterprises, the development of policy system to promote tourism, has far-reaching significance to the adjustment of industrial structure in china.This paper is divided into four parts, the first part starts with the background and significance of the business tax reform VAT from the narrative, "to replace business tax with value-added tax(VAT)" on the issue of domestic situation, describes the main point of growth related problems of domestic scholars. In addition, the simple sum of the scope of Taxation of foreign scholars on the theory of value added tax, value added tax advantages. The second part is "analysis of China’s tourism industry to increase business theory", starting from the characteristics of the development of the tourism industry, through the analysis of the current business tax system defects of China’s tourism industry and the negative impact of China’s tourism industry "demonstrates the necessity to replace business tax with value-added tax (VAT)". The three aspects are combined with the tourism industry, the scope of business tax, business tax and other means that the development of China’s current tax system has been unable to meet the requirements of tourism industry, the reform be imperative. The third part is "the effect analysis to replace business tax with value-added tax (VAT)" of China’s tourism industry. On "to replace business tax with value-added tax(VAT)" system effect, structure effect, economic effect and the scope of Taxation, tax rate, tax locations and other issues specific analysis. The last part is a summary of this article. The tourism industry "to replace business tax with value-added tax(VAT)" is conducive to promoting the development of tourism industry and the third industry, optimize the industrial structure of our country, and promote the transformation and upgrading of economic structure in our country. The tourism industry business tax VAT is significant, be imperative. In this paper, through the analysis and Research on the tourism industry "to replace business tax with value-added tax(VAT)", planning and committed to the tourism industry business tax VAT tax system in the process, hoping to provide some suggestions for the imminent implementation of the tourism tax reform.