The "substituting the value-added tax for business tax reform" is an important part of tax system structural reform, and has a far-reaching influence on national governance.The space and time background was deeply analyzed that of the "substituting the value-added tax for business tax reform", the relationship was clarified between the "substituting the value-added tax for business tax reform" and the national governance. The pareto effect of the tax reform level from the full implementation of "substituting the value-added tax for business tax reform" provided tax system security for the modernzation of national governance system and ability to improve national governance efficiency. After the"substituting the value-added tax for business tax reform", tax structural reforms should include the combination of VAT class and the unified tax rate, the systematic reform such as consumption tax, environmental tax, property tax and income tax, and optimization of the proportion of direct taxation and indirect taxation. Only then, the modern tax system matching with the national governace system and capacity can be established.