Research On The Implementation Of VAT In The Construction Industry

This paper investigates value-added tax issues of construction industry from five parts, the purpose is that by doing research on value-added tax of construction industry, this paper can give the reference frame for the expansion in construction industry expanding in value-added tax, which is an important part of value-added tax reform during the 12th five-year's tax reform, and promote the reform of the value added tax of construction. Following comes the brief of the contents.The first part:IntroductionIn the introduction, this paper discuss in the following three aspects:the introduction of this problem, review of the research achievements, the research thoughts and framework.In the 12th five-year plan, it puts forward to reform and perfect tax system, one of most important aspects, is to expand the scope of value-added tax law, and to reduce the taxation scope of business tax, thus perfecting the taxation policy, promote the upgrading of the industrial structure and the overall development of service industry. As an important material production sector of national economy, the implementation of value-added tax in construction industry is meaningful to the research of our country circulation tax system reform and the whole tax system, it is also of great importance and theory significance to the construction industry.The second part:the evolution and development of the construction industry commodity taxFirst of all, the overview of construction industry. First, a clear definition of the construction industry. The building industry is departments engage in construction and installation engineering production activities in the national economy. Second, this paper classifies the industry from two aspects:the construction content and qualified of enterprises. From the construction content, construction industry is divided into housing construction and civil engineering, construction and installation, building decoration and other construction industry; from the qualification of enterprises, the construction industry is divided into general contracting construction enterprises, professional contracting business, labor subcontracting enterprises. Third, this paper introduces the peculiarities of construction industry from two aspects:the production and management. On the production side, the construction industry has great mobility, long cycle, diversity of features; on management side, the construction industry is complex, the occupation of funds are large, asset management is difficult.Then, this paper introduces the three evolution stages of construction industry commodity tax. Take 1949 to 1957 for the first stage, China was new founded, and it is in the economic recovery and development period, this one period for the construction industry to form the initial stage and the construction of commodity tax established the consolidation phase; 1958-1977 for the second stage, the great leap forward, three years of natural disasters, the Cultural Revolution to the development of the construction industry caused great disturbance, the stage for the construction industry and stagnancy stage and construction of commodity tax tortuous development stage; 1978 to now as third stage, the open and reform policies for the development of construction industry in China have provided an opportunity for the construction industry, the stage is the recover}'stage of development of construction and reform stage of commodity tax.The third part:the necessity of the implement of value added tax to the construction industry.First of all, I analyze the repeated taxation problem. Repeated taxation refers to a variety of taxation to the same object or multiple taxation, as to construction industry, repeated taxation refers to the collection of business taxes include the input tax comes from the pre link when buying goods or receiving services, and this part was imposed in different links. In this part, from the introduction of input and output of construction industry, I do a comprehensive analysis of inputs including tax, then elaborated influence of the double taxation to the development of construction industry.Then, I analyze the tax collection and management problems. The levy of business tax in construction industry brought our country tax revenue collection and management a series of issues:first, the interruption of the VAT credit chain; second, it made the tax collection authority not clear; third, material purchasing invoice management loopholes in tax collection and management.The fourth part:the design of the implementation of value-added tax to the construction industry.The basic principles when designing the tax system when implementating value-added tax in construction industry should follow are:to maintain the basic existing level of the industry tax burden, keep the central and local government, government and enterprise financial interest to allocate pattern unchanged, for the convenience of tax collection and management, to improve administration efficiency.First, object of Taxation and taxpayer. Construction industry, refers to construction and installation engineering operations, the value-added tax including construction, installation, repair, decoration, other engineering work; taxpayer are the labor units and individuals in the territory of China construction industry.Second, the tax rate. The implementation of value-added tax in the tax system in construction industry should be designed to keep the industry overall tax burden level as much as the current business tax which is 3%. By using empirical data and the input-output table of 2007 specific data for analysis, the rate was determined as 13%.Third, the output tax. The construction industry value-added tax VAT is a tax based on the identification of key construction industry to determine, VAT tax based on the architectural engineering settlement income, namely to construction shall be the total price and other charges.Fourth, the input tax. Construction of input VAT comes out from providing construction services in the process of purchasing goods or services, the current situation in our country, we should take the invoice method in the portion of the deduction.Fifth, the place and the time of occurrence of tax obligation. Time of tax duty should distinguish whether signed a written contract and indicate the date of receipt to determine. In addition, this part also analyze the time of tax duty under the three special circumstances:the pre-collection, building external sales, building donation.Sixth, the small scale taxpayer. In this part I introduce the system of small scale taxpayers of value-added tax in construction industry, including the following three parts:the identification of the small scale taxpayer, the VAT rate for small-scale taxpayers or small-scale taxpayers'taxable amount.The fifth part:the supporting measures of the value-added tax in construction industry.First of all, this part puts forward measures from respect of income allocation, and it puts forward four measures as following:Income ascription should be unchanged, the distribution of income should be increased, reform local tax and improve the system of transfer payments.Secondly, this part proposes measures from aspects of the tax collection and management. Tax collection and management mainly involved in three aspects: Institutional settings, invoice management, department coordination.Finally, some other relevant supporting measures, which include the two measures such as the policies, the transfer of real estate.