On the basis of the current VAT rates of 17% and 13%, two low tax rates of1%and 6% are added, and the transportation industry applies the 1 1% tax rate, R&D and technical services and culture. The business tax relief policies enjoyed by pilot taxpayers such as technology transfer are adjusted to exempt from value-added tax or refund immediately; At present, general VAT taxpayers can purchase services from pilot taxpayers, and can deduct the input tax. The original applicable business tax difference tax policy of the pilot taxpayers can be continued during the pilot period; The business tax revenue originally belonging to the experimental area still belongs to the experimental area after the value-added tax is levied.

Changing business tax into value-added tax involves a wide range. Choosing Shanghai transportation industry and some modern service industries as pilot projects will help to accumulate experience for the comprehensive implementation of the reform.

The catering industry is not included in the scope of changing business tax to value-added tax for the time being.