Research On The Influence Of Vatreform On Construction Enterprises

There were two taxes which were VAT and business tax in our tax system for a long time, which resulted in some problems such as double taxation and unevenness of inter-industry Tax Burden. And these problems need to be solved through further tax reform to adapt to economic development. Therefore, the work of experimental unit of “VAT replacing the business tax”(referred to as “business tax to VAT”) began in shanghai from the industries of transportation and part of the modern service industry from January 1, 2012. With the deepening of the reform, “business tax to VAT” has been gradually throughout the country. In addition, business tax to VAT reform will be carried out in construction industry, real estate industry, financial industry and service industry, eventually replacing the business tax thoroughly from May 1, 2016. Due to the complexity of building enterprises environment, business tax to VAT reform involves a wide range of impact. Therefore, based on the construction enterprises, the thesis analyzes the influence of the reform on construction enterprises and puts forward the corresponding countermeasures and suggestions from the national policy level and constructive aspects.This thesis combs a large number of domestic and foreign literature, and on the basis of the relevant theories of business tax and VAT, analyzes the development situation of construction enterprises and the necessity and feasibility of the business tax to VAT reform. Then, taking the W construction co., LTD. as an example, the thesis analyzes the impact of the reform on the construction enterprises. By measurement can be found a serious shortage of the VAT input tax deduction in construction enterprises, the business tax to VAT reform will increase the enterprise tax burden greatly; meanwhile, the reform complicates financial accounting in construction enterprises, changes the focus of financial management, makes the operation and management mode different and enlarges the more space of tax planning. Finally, the thesis puts forward the corresponding countermeasures and suggestions from the national policy level and constructive aspects. The leadership of construction enterprises should attach great importance to the reform and do their best to help to promote the implementation; and change management pattern, adjust management strategy and strengthen the delicacy management; and standardize supplier management and contract management to ensure reasonable to obtain the invoices for value-added tax; and improve the level of financial accounting, strengthen the capital management and invoice management and use the scientific method of tax planning. The government should also be fully ready to arrange the business tax to VAT reform and launch transitional preferential policies, such as expanding the scope of input VAT deduction of the enterprises, imposing the unfinished contract simply and increasing financial support to promote the tax reform smoothly.