The Effect And Coping Strategies Of “Business Tax To VAT” Reform In The Real Estate Industry

Replacing business tax(BT)with value-added Tax(VAT)reform refers to the replacement of BT with VAT and is called as “Business Tax to VAT” reform.From January 2012,Shanghai took the lead in the implementation of value-added tax(VAT)instead of business tax in service industry.“Business Tax to VAT” reform to be rolled out from 1 May 2016 and the business tax stepped down the stage of history in China.The construction industry,the real estate industry,the financial sector,the life of all services was counted into the range of “Business Tax to VAT” reform,which will bring greater impact on the relevant industries.As one of them,the real estate industry also must face with great change.The real estate industry has a the long production cycle,is involving many of industries involving such as transportation industry,financial industry,and manufacturing industry and so on and relating to lots of tax categories such as the enterprise income tax,value-added tax,land use tax,land value-added tax,deed tax,stamp tax,land tax,urban construction and maintenance tax.Moreover,the tax policy for real estate industry also extremely complicated.So,it is important to analyze the impact of “Business Tax to VAT” in the real estate industry which may lay a good foundation for analyze the impact to the economy and help the government to develop macroeconomic policies.Our aim is to study the effect and coping strategies of “Business Tax to VAT” reform in the real estate industry with a case study of A real estate enterprises in Chongqing.In this paper,we first clarified the situation and problems of the implementation of value-added tax in real estate industry of foreign and analyzed the reasons of “Business Tax to VAT” reform in these countries.Combined with the policy of “Business Tax to VAT” reform of China,we evaluated the current situation of the real estate increase in China.Compared the present management situation of real estate development with that before of “Business Tax to VAT” reform and combined with the main camp changes,we analyzed the tax effect,financial indicators,operating results,strategic management and predicted the main problems and development trend of the real estate industry.Furthermore,we analyzed the difficulties in the development of A real estate enterprises about “Business Tax to VAT” reform and studied coping strategies.