Research On The Effect Of Replacing Business Tax With VAT On Modern Service Enterprises

Business tax and VAT have always been the two important turnover tax in our country.At present,modern service industries such as research and development information industry,broadcasting and film industry involved turnover tax is business tax.The double taxation problem of business tax not only discourages the active taxation consciousness of service industry taxpayers,but also impedes the rapid development of service industry.Based on this,it is a reform to adapt to the development of Chinese characteristics,and also a pioneering innovation in the tax reform.In January 2012,the central government first launched a pilot reform which contains the transportation and some modern service industries in Shanghai.Starting from May 2016,the VAT has been pushed open throughout the country,and the construction industry,real estate industry,financial industry and living service industry will be included in the pilot scope.The implementation of the value-added tax has realized the full coverage of goods and services,it’s basically eliminates double taxation and through the VAT deduction chain,will play an important role in promoting industrial transformation,structural optimization,consumption upgrading,innovation and entrepreneurship and deepening supply-side structural reform.First of all,this paper starts with state reform policy and modern service industry,through the elaboration of the background and significance of topic selection,domestic and foreign literatures,research ideas and methods,structure arrangement,innovation and shortage.This paper introduces the specific definition and three theories of taxation such as tax economic stability theory,tax economic growth theory,tax system structure optimization theory.Then,this paper analyzes the internal mechanism of VAT with tax base change and tax rate,which influences the development ability,investment ability and profitability of modern service industry.The paper analyzes the influence path of the tax reform on modern service enterprises by input tax deduction and output tax shift.Thirdly,this paper uses the enterprise data in CSMAR database,With the help of a double difference model,empirically analyzes the growth effect of replacing business tax with value-added tax on modern service enterprises by the capacity of development,investment and profit.The results prove that,the reform will have positive effect on the development ability,investment ability and profitability of modern service enterprises.Related to the information technology,logistics assistance and leasing industry,the implementation of the tax reform takes better promotion to cultural creativity and authentication consulting industry.However,in terms of the investmentcapability,the reform is more significant to the research and development information technology industry.In the aspect of enterprise profit,the effect of replacing business tax on logistics and leasing industry is greater than that of other modern service industries.Finally,this paper proposes that modern service enterprises should pay attention to the heterogeneity difference to promote the development capacity,as well as make full use of tax planning to improve investment ability and reasonably choose the identity of taxpayers and suppliers to enhance profitability.