Study On The Influence And Solutions Of BT Reforming To VAT-Based On A Construction Business

As a solid revolution for financial taxation,replacing BT with VAT(The Movement)makes great effort for “Stabilizing growth,Adjusting structure,Benefiting people” and promotes supply-side structural reform to finish the campaign.This implementation not only excludes BT thoroughly,but also becomes an huge movement since 1994 tax distribution.The movement of very last four industries has been on board since May 1st 2016.Industries include:Architecture,Life Service,Finance and Real Estate.Fully implementation of VAT system accelerates detail management procedure and optimizes industrial structure with remarkable effect.According to the Ministry of Finance,since May 2016,total new VAT payable reached 640.9 billion.This number is 14.7% lower than BT payable.Tax bearing of architecture reduced 6.5 billion(3.75%).26 sub-industry reach the expectation of reducing tax bearing without increasing.However,because of the special characteristics of architecture,the movement is facing much of opportunities and challenges.To realize comprehensive management,high-efficiency levy and perfect levy system,entities should regulate timely,enforce tax revenue publicity heavily,make sure the sharing of resource and boost the industry eventually.On the basis of researching Chinese and Foreign VAT regulations,this paper shows the revolution background of The Movement in architecture and the importance of implementation,analyzes the influences brought by the movement deeply,and gives advices on how to obtain tax bonus.This essay takes entity A for example and refers to the data of 2011-2015 financial statements to analyze multiple impacts taken from the movement.Results shows that short-term movement does not reduce the burden of taxation but has increased instead.Finally this paper suggests that entity should strengthen supplier management,standardize contract management,and also gives advices on governmental tax management.