Research On The Financial Impact Of The Construction Enterprises Caused By "VAT Replacing Business Tax"

For a long time,the double taxation problem caused by the coexistence of business tax and value added tax in construction industry has not been solved. Although the reform of the tax system in 1994 and the transformation of VAT in 2009 are to play a role in promoting economic development at that time, but with the development of economy, the problems left over from the reform of tax system are gradually revealed, and become a problem to be solved urgently. As one of the key industries in the development of the real economy, the construction industry has made a very important contribution to the economic growth of our country every year. However, under the pressure of the economic transformation, "VAT Replacing Business Tax" of the construction industry is becoming increasingly urgent. 2016 is the last year of "VAT Replacing Business Tax", the full implementation of "VAT Replacing Business Tax" is becoming an established fact, the construction industry tax reform is in sight. However the change of the tax model brought by "VAT Replacing Business Tax" is bound to have an impact on company finance, to analysis of the impact on the enterprise finance caused by "VAT Replacing Business Tax" and to discuss what measures the company will take to deal with it are very necessary.This paper mainly uses the method of literature research, case analysis and combining qualitative and quantitative analysis to research the financial impact of the construction enterprises, which caused by "VAT Replacing Business Tax". Through the literature research to understand the development status of the "VAT Replacing Business Tax" and difficulties and problems it faced. In this paper, at the same time of the quantitative analysis of the financial data of the case enterprise, the qualitative hypothesis was added in the course of the study, because of the "VAT Replacing Business Tax" has not been implemented, so that the research can be carried out smoothly. This paper uses the double taxation problem and the adverse effects caused by the coexistence of business tax and value added tax as the starting point, to clarify the relevant theory and defined the related concepts, select YD company as a case study, Specific through the impact on accounting method, the structure and amount of financial statements, tax burden level and tax management of the case enterprise caused by "VAT Replacing Business Tax", to analyze the financial impact of tax reform on construction enterprises and put forward relevant countermeasures and suggestions, finally, the paper draws the conclusion, points of the research limitations and future prospects.Through theoretical research and case analysis, this article believes that the implementation of "VAT Replacing Business Tax" in the construction industry is very necessary, the settlement of tax system drawbacks will be conducive to the better development of the industry. Theoretically "VAT Replacing Business Tax" can play a certain role in tax reduction and income increasing. Of course, the change of tax burden depends on the growth rate of the business revenue, and changes in profits also have to consider the fluctuation of business taxes and additional. So for different enterprises, the effect of the implementation of "VAT Replacing Business Tax" is not consistent. But overall, "VAT Replacing Business Tax" is good for transition and development of construction industry. The expected contribution of this paper is a literature review on the research of the "VAT Replacing Business Tax", which is helpful to clarify the research problems and the difficulties faced by the reform,and analysis of the financial impact of "VAT Replacing Business Tax" implemented on construction enterprises. But because the literature materials collected by the author may not be complete, as well as the limit of author's ability, the research also has many deficiencies.