Effect Analysis Of “Business Tax To VAT” On Real Estate

On May 1,2016,the remaining four industries in China,real estate,construction,finance,and services also began to carry out "Business Tax to Value added Tax(VAT)",which marks the business tax out of the history of the stage.As the most important reform in the field of finance and taxation,the financial statements,the financial risks,the tax burden and the upstream and downstream industries will have a certain impact.The real estate industry as an important pillar of the tertiary industry,will play an important role in promoting economic development.Therefore,the reform on the real estateindustry will cause changes in the economy.This contextfocus on the changes of the real estate after " Business Tax to VAT ".Firstly,We analyze the necessity of the " Business Tax to VAT " in the real estate industry.The double taxation is the disadvantage of the business tax,so when levied business tax,economic growth has been hindered.However,the value added tax only levy the added part,leading to the burden of taxation reduction,so the " Business Tax to VAT " is unavoidable.This part paves the way for the following theoretical analysis and case analysis.Secondly,We introduce the theoretical analysis of the "Business Tax to VAT " in the real estate industry.Point out the variation of the internal factor(financial statements,financial risk and tax)and the external factor(for the real estate industry on the downstream and the impact on the fiscal revenue)in the real estate industry after " Business Tax to VAT ".There are many indicators reflected,for example,Inventory costs,Fixed assets,accumulated depreciation,carry-over cost,operating income,operating costs,sales tax and extra charges,net profit,burden of taxation and so on.Net profit changes by the variation of operating income,operating costs and sales tax and extra charges.Burden of taxation leads to the variation of the business funds,thus gives rise to the variation of operating activities,investment activities and financing activities.We introduce the case analysis of the "Business Tax to VAT " in the real estate industry according to the financial data of WK company.We can conclude the descend of the net profit by means of the variation of operating income,operating costs and sales tax and extra charges in income statement.More,explain the development trend in profitability,operational ability and solvency by means of the further analysis of enterprise financial index.Finally,Analysis the problems of the above theory and case analysis referring and puts forward the corresponding countermeasures.In the short term,"business tax with value-added tax(VAT)" will cause the tax burden of enterprises rise,hinder the development of economy,but in the long term,"business tax with value-added tax(VAT)" can not only reduce the burden of enterprises,but also can unify the tax system,promote the national economy rapid development.