The Effects And Countermeasures Of The VAT Reform On The Civil Construction Business Of Construction Enterprises

On May 1st,the business tax was fully implemented in VAT,and the scope of the pilot project has been expanded to the construction industry,the financial industry,the life service industry and so on.It is very important for our country's tax reform to realize the VAT replacement completely.As the pillar industry of the national economy,the position of construction industry in China's industrial economy is extremely important.This reform is not only related to the further development of the construction industry,but also related to the upgrading of China's industrial economy.At the same time,it's related to the further improvement of the mechanism of social economy in our countryThrough statistical analysis,this paper summarizes the development history of China's construction industry in recent years and its achievements and the bottleneck of development.Then it takes a typical case—Long Yuan Construction Group Co.,Ltd for example to analyze deeply.This paper firstly describes the research background and method,then it studies the influence of "VAT Reform" on construction industry and the possible coping strategies.The last part of this paper is taking the selected case for example,analyzes the impact of VAT reform from three aspects: the tax burden,finance,operation and management.Finally it discusses the implementation of the policy,mainly from the tax rate and the category,it explores some practical problems which are likely to be encountered,and puts forward some corresponding suggestions.The results of this study showed that: putting the construction industry into the VAT reform is of big significance.Due to the location of the special industrial chain of construction industry,it is of great importance to change the business tax to VAT.Only by incorporating the construction industry into the scope of the VAT,the chain is complete and the advantages of value added value can be fully played.Meanwhile,Long Yuan Construction Group Co.,Ltd should view the tax reform as an opportunity,organize the learning of the value-added-tax and relevant policies,perfect the internal control mechanism,change the management idea,do a good planning of tax,and promote the improvement of the standard and effectiveness of self-management system.