Study On The Tax Management Implications And Response For YD Construction Company Under VAT Reform

In May 1^st,2016,China's construction industry was officially started the reform to replace business tax with value-added tax.The reform can avoid the phenomenon of repeated taxation and optimize tax system as well as operation of enterprises.In the meantime,the value-added tax reform to construction companies greatly affects tax tax management.This paper selected YD Construction Company as an example and combined with the latest regulations and law to comparatively analyze the influence to its tax accounting,invoice management and tax declaration,tax risk,tax burdens.And then,according to these effects,the paper will offer some suggestion to help YD Construction Company to overcome.Finally,it carried on the summary to the article.Through the analysis,we found that its tax accounting had much more relationship with the operation which raised high criterion to their financial staffs and communication between the enterpirse and project department.Also,the effect highlighted the emphasis of invoice and cash flow because of the separate of tax and value.For the invoice management and tax declaration,it became more and more complicated.Plus,the company had problem to tax deduction for the sake of management which told us that how important to attain as well as keep the invoices and make the responsibility system.For tax risk,the payment default and the way of VAT collection made YD Construction Company suffered cash flow and inside lease checking problem.Moreover,due to the profit rate and management as well as policy,the tax burden raised.According to the comparative analysis,we knew that YD Construction Company was able to overcome using some mearsures.We hope our suggestions can provide a reference for YD Construction Company and others,making the enterprises standardize the tax work in order to get bonus maximally from the VAT reform.