Research Of Problems And Countermeasures Of Construction Enterprises Facing The Reform Of Replacing Business Tax For VAT

Business tax and value-added tax parallel transfer tax system has been implemented for a long time,resulting in repeated taxation,inequality tax burden in different industries and other problems,leading to many difficulties to adapt to the economic development.Shanghai took the tax reform first on transport industry and part of modern service industry on January 1,2012,and then the reform has been gradually launched nationwide.The construction industry,real estate industry,financial and life services industry had been involved into the tax reform on May 1,2016,as the Vat has completely replaced the sales tax.Due to the complex environment of the construction enterprises,many difficulties have appeared when facing the reform.The construction enterprises are regarded as the research object,and the main problems have been analyzed to give advices to enterprises.A large number of domestic and foreign literatures have been combed to illustrate the merits of the tax reform.By analyzing the problems construction companies may encounter and use the annual data of X Construction Company in 2016 as an example to analysis the specific data such as tax burden,profit and cash flow and three statements quantitatively after the reform.Some corresponding countermeasures and suggestions are put forward as followings: management of the enterprise,management of the fund,management of the purchasing,planning of tax and the control over invoices.In the post era of the tax reform,all enterprises especially the construction enterprises should take measures from the above four major aspects to help companies better coping with problems.