An Impacts Analysis For The Policy Of The Replacement Of Business Tax With Value Added Tax In Wenzhou Cinstruction Business

In the recently released tax policy,the transformation from sales tax to value-added tax is undoubtedly the focus of attention.The transformation from sales tax to value-added tax refers to changing the industry originally levied according to sales tax to the same industry levied according to value-added tax.From the year of 2012,the transformation from sales tax to value-added tax was piloted in some fields in China.After four years of attempt,China comprehensively promoted the transformation from sales tax to value-added tax and listed the four major industries,namely,service,construction,real estate and finance in the pilot scope in 2016.After completion of the transformation,sales tax will withdraw from the stage of history.According to the rhythm of transformation,namely,from easy to difficult,the four industries involved in the transformation displayed the most difficult problems during all transformations,involved a complex economic environment and produced an extensive influence.At the closing of the transformation,the effectiveness of the transformation will affect the success of the implementation of the transformation policy from sales tax to value-added tax.After the business tax is changed to value-added tax,the management of value-added tax will be more rigorous and mature than the sales tax.The completion of the transformation from sales tax to value-added tax will also promote the improvement of the tax levy and administration system,strengthen the management made by tax authorities and reduce tax loopholes.At the same time,there are some differences between the calculation method for the value-added tax and that for sales tax.The value-added tax mainly collects tax on the added value of products,which will improve the recurrence of taxation at the original sales tax levy stage and reduce the burden of tax payment for enterprises.At the beginning of the implementation of the transformation from sales tax to value-added tax,it is estimated that the total tax as much as RMB 400 billion will be cut.The implementation is conducive to entrepreneurship and innovation.It is in line with the current trend of international tax reduction and it will produce a good promoting effect on attracting domestic and foreign capital and enterprise back-flow.However,in the specific implementation of policies,theactual situations are different from the policy design.Due to many factors such as the characteristics of the transformed industries,development differences between markets in different regions and the inappropriate implementation of policies,some enterprises reported that their tax burdens are increased,their operating costs rose and their development space was negatively affected.The implementation of the policy has deviated from the initial implementing projection.On the basis of the previous research,this paper took theoretical analysis combining the actual operating status of enterprises,took the first-hand information as the basis and applied many methods such as case interviews and literature inquiries to understand the current policy implementation in the process from sales tax to value-added tax.Through selecting variables,constructing models and making regression analysis,the paper made research on the change of tax increase and decrease in the construction industry in Wenzhou City after implementation of the policy.?At present,there are some problems in implementation of the policy to transform from sales tax to value-added tax in the construction industry in Wenzhou city.For example,the policy implementation isn't in place and the burden reducing effect isn't obvious.The implementing environment in the policy presetting is different from the actual situations of economic development in Wenzhou City,which poses challenges to the tax administration and the market constructing level.Therefore,the tax authorities need to solidly push forward the implementation of the five plans in the initial period of the transformation from sales tax to value-added tax and reduce the levy management of the tax department for reducing management costs.At the same time,the paper suggested that enterprises actively cooperate with the current policy of transformation from sales tax to value-added tax,actively adapt to tax levy changes and make good use of public resources to train their own financial personnel for improvement of their own risk responding capabilities.The tax authorities should also make good guidance and strengthen supervision to ensure fairness in the implementation of policies.At the same time,other departments related to market construction and supporting management should make good responding measures,manage good qualification management,standardize market order,improve the market constructing level and make up for current management loopholes to ensure a good market environment for implementation of the policy to make transformation from sales tax to value-added tax.