The Influence Of VAT On Construction Enterprises And The Countermeasures

In March 2016,the Ministry of Finance and the State Administration of Taxation jointly issued the Notice<Notice on the Pilot Project of Investing in Value-added Tax on Business Tax>(Finance and Taxation[2016]No.36).From May 1,2016,in the nationwide comprehensive the implementation of the VAT,the introduce of this policy will extend the scope of the pilot to the construction industry.As a major reform of China's tax system,the VAT have a significant impact on the construction enterprises both from the production and operation mode,and internal management model.The impact of replacing business tax with value-added tax on construction enterprises are studied in the thesis.And put forward a series of suggestions on how to deal with the policy of replacing business tax with value-added tax,in order to provide measures to reduce tax burden for construction enterprises.First of all,to conduct a comprehensive and in-depth analysis on the policy to replace the business tax with a value-added tax to ensure that the content of the policy to grasp the accuracy and comprehensiveness.Secondly,from the perspective of construction general contracting units and subcontractors to analyses the impact of possible impacts,including tax burden,procurement preference,subcontract management,accounting and management.According to the different types of projects on the replace business tax with value-added tax before and after the tax burden to calculate,including ordinary reinforced concrete works,steel works and assembly of concrete,the replace business tax with value-added tax on the impact of tax burden.Finally,it puts forward how the construction enterprises should deal with the strategy of "increasing the operation",mainly from two parts:construction general contracting unit of the coping behavior,reform the procurement management system,change the subcontract management,improve the management ability,change the financial management mode;professional subcontracting units to respond to the reform of procurement management system,change the concept of labor management,reasonable to determine the contract price,optimize billing management,strengthen financial supervision and management.