The Influence Of "Business Tax To VAT" On Construction Enterprises And The Countermeasures

At present,China as the second largest economic entity in the world,remarkable achievements has been achieved in economic development over the years?Achievements can never be achieved without new concepts and new ideas,a series of reform measures have become the driving force of economic development? In this series of reforms,the reform of fiscal and taxation system is closely related to infrastructure construction,redistribution of social resources and development of national economy? From the VAT expanding circumference to the eight pilot provinces in August in the same year,from the transport industry and some modern services to be fully implemented in 2016,“Business Tax to VAT” is known as “seize the moment”.It is not only improving the tax system,but also interpreting the concept of scientific development of tax system? “Business Tax to VAT” not only reduce the burden of taxpayers,create fair tax environment,enhance the competitiveness of enterprises,but also become the booster of supply-side structural reform,has promoted the healthy and coordinated development of national economy?Construction industry as the industry which is closely related to the economy and people's livelihood,“Business Tax to VAT” will inevitably impact on its original business model,change its original organizational structure,impact on its original management style and affect its original accounting?So,will construction enterprises reap the benefits of the reform-reduce the tax burden and reduce the cost simply by waiting for windfalls? The answer is certainly negative,because of long time span,more funds be used,the longer cycle length,involving wide range,coupled with the complex industry chain in upstream and downstream,business irregular make it be difficult to obtain sales tax invoices and other reasons also make the construction industry to be one of the hardest bones to chew in “Business Tax to VAT” ?So,how to seek development in the concussion of the construction companies and grasp the opportunity in the reform has become a realistic question which is facing each construction company? The thesis takes the specific project of the LH Construction Company as the case,analyzes the effects of “Business Tax to VAT” on construction enterprises and puts forward corresponding countermeasures?This paper starts from the general analysis of the influence of the “Business Tax to VAT” to construction enterprises on the tax,accounting,financial statements and management,analyzes the influence of the “Business Tax to VAT” on the LH Construction Company by combining the theory with enterprise data and the project example? According to the analysis,it is concluded that: the first is that actual VAT burden of construction enterprises depends largely on the ability of obtaining the legal and deductible invoices for value-added tax;Second,the influence of “Business Tax to VAT” on the accounting of construction enterprises is mainly manifested as: account setting,accounting content and accounting object amount will be changed;The third is the structure of the financial statement is not affected seriously by “Business Tax to VAT”? However,due to the existence of VAT deduction chain,the amount of the items would be reduced;The fourth is after “Business Tax to VAT”,financial accounting,enterprise daily management such as invoice management,tax-related management,contract management and business model of construction enterprises will be affected and impacted in different degree?Therefore,construction enterprises need to adjust the corresponding daily business according to the new tax system?In view of the above problems,this paper puts forward effective coping strategies from the reasonable application of fiscal and tax policy,taking the opportunity to standardize the process of material procurement,establishing and perfecting labor employment model and paying attention to invoice management to avoid the risk.