Effect On Transportation Industry By Replacing Business Tax To VAT And Resolution

There is a reallocation between the central tax bureau and local tax bureaus by replacing Business Tax by Value Added Tax. This reform is an important measure in improving the fairness and effectiveness of Chinese tax system. And it will release the burden of companies those focus on service field. It will be beneficial to the adjustment of economic structure and to the development of the third industry. The transportation industry as a basic organization has a comprehensive influence to the other industries. It shows positive effect to refine the tax system in this context.Basing on the background of VAT-replacing-Business Tax,this article studies the influence on Transportation industry the reform made. In order to get reasonable conclusion, some literatures are referenced during study. We take a transportation enterprise to conduct a case study analyzing the change in tax burden based on the specific tax data. We also analyze the temporarily tax increase,and finally come up with some coping strategies to help similar companies adapt to the new tax policy and avoid tax risks.At last, this paper discusses the complexity of the transportation industries and points out that the situation makes different business and operating model. For different sub transportation companies, for example, housing, trading, transfer-financing, should make appropriate tax planning. In the future, the tax bureau also should make the tax system more detailed in order to get it more effective in encouraging transportation industry to develop more rapidly.