Abstract: As the pioneer of service industry in China as well as linking up all sectors of service industry, logistics industry plays a vital role in national economic development. Thus, "replacing BT (business tax) with VAT (value-added tax)", starting on logistics industry, has significant value to optimize the tax environment in service industry. However, there still exist many problems in current "replacing BT with VAT" policy: the tax rates of "logistics assistance service" and "transport service" are not unified; the tax burden of logistics enterprises increased sharply; the tax deduction rights is infringed; the tax policy of express enterprises is indeterminate; and the implementation of the relevant financial support policies has not been carried out completely. Some underlying legal problems of "replacing BT with VAT" policy is that of the policy's incompleteness, such as, the regression of VAT, the readjustment of central and local governments' tax revenues and the deviation from the concept of finance and tax legalization during the implementation process.