Research On The Effect Of “BT-VAT”in Modern Service Industry Of ShanDong Province

With the development of China’s economic,our country has paid more and more attention to modern service industry.The 13 th five-year plan proposed to accelerate the development of modern service industry.The pilot reform started in Shanghai in 2012,and till 2016 on May 1st,the pilot program of replacing business tax with VAT will be extended to four sectors-property,construction,finance and consumer services-to cover all goods and services.In the background of the reform and combined with the research of scholars both at home and abroad,this paper analyzed the influence of the reform on modern service industry.This paper mainly used documentary research,combined with the study of domestic and foreign scholars on tax policy and modern service industry,carded the course of the reform of tax system,divided the range of modern service industry,and based on the experience of the foreign tax policy approaches for the modern service industry.Using the data of HZ city during the reform for in-depth analysis to prove that the reform brought positive effects to modern services,such as reducing tax burdens for all industries,enhancing enterprise investment enthusiasm,Optimizing the industrial structure,creating a fair tax system environment,etc.Also,this paper proposed suggestions on issues that small tax cuts in some industries,complex collection and management and the lack of investment in the services industry.This paper pointed that,according to the problems that came out during the taxation reform can be solved by four methods which are improving the tax policy,improving the tax management system,coordinating the financial interest relationship between the central and the local,Strengthen the internal control of the taxpayer,so that the development of modern service industry can be promoted.