The Effect of Replacing BT with a VAT on Sports Service Industry:Estimation of Tax Changes,Countermeasures and Suggestions

The methods of literature review, mathematical calculations and comprehensive analysis have been used in this paper.By summarizing the existing tax-related policy in China, we preview the policy of replacing the BT with a VAT, which is about to be implemented in sports service industry, and we estimate roughly the gross tax burden changing before and after the replacing, aimed at ordinary taxpayers and small taxpayers.The study finds out that the gross tax burden will increase slightly in the former, and decrease slightly in the latter.The development and growth of sports service industry will not be promoted, due to the widening gap between big and small sports service enterprises, which is probably caused by replacing the BT with a VAT.Moreover, the tax and fee burden is relatively heavy in sports service industry in China.Thus, the strategy of increasing the deduction and raising service price in big sports service enterprises fails to lower the tax burden effectively.In this circumstances, the state should reduce VAT, enterprise income tax and other kinds of tax and fee, to support and promote the development and growth of sports service industry.