The Influence And Countermeasures Of "Business Tax To Vat" On Real Estate Development Enterprises

Business tax to VAT's transformation is experienced from the first trail in Shanghai to the finally promotion spread the nationwide,its dramatic change was from the trail in the transportation industry and part of modern service industry to the general nine tax items.After the nation-wide's replacement of the business tax to VAT,as an important part of China's economic development,the real estate industry has been influenced in all respects except the tax bearing.This paper is based on this kind of circumstance,take the influence of the replacement of the business tax with VAT as the center of a circle,analyze detailly from four aspects: financial accounting,operating cost,internal administrative control,and financing conditions.In addition,this paper will finally give some recommendations according to these influences and the reference of the A company's respond facing to this change.This paper analyzed the realestate development enterprise's influence from the financial accounting,operating cost,operating management,and financing conditions quantitively and qualitatively.Conclusion shows that:(1)Enterprise's financing accounting become much more complicated than before.(2)Refer to the enterprise's operating cost,because of the different deductible tax rate apply to the different part of the cost,it will bring some impacts to the cost.(3)This brand new VAT deduction model ask the enterprise to reduce the financing impairment from these three sides: cooperation mode,personnel management,and invoice management.(4)During the transition period,former projects' change in the financing condition is not that significant,but among the operating cost part,whether different part of the cost can be deducted will influence those coming projects straightforward.This paper comes up with some recommendations and responds for the realestate development enterprises to face the replacement of the Business Tax with VAT actively:(1)Adjust the financial management system,set special staff to charge the tax related affairs;(2)Plan the enterprise's business operating model elaborately,choose proper suppliers,update contract templates,replace the traditional cost measurement pattern;(3)Enhance the staff's awareness about the tax deduction;(4)Perfect the management regulations of VAT special invoices,keep the VAT special invoices in reasonable acquiring,certificating and find out fake invoices through an anti-fake process.