Study On The Impact Of Value-Added Tax Expansion And Reduction Rate On X Construction Company

Value-added tax(VAT)is the largest tax in China.Since the large-scale implementation of VAT in 1993,VAT in China has been on the road of reform.In 2012,China launched the reform to expand the scope of value-added tax collection.This reform is to gradually change the service industry,which used to collect business tax,into a unified value-added tax system.Until May 1,2016,China has comprehensively collected value-added tax,abolished the collection of business tax,and thus reduced the repeated taxation between industries.Premier Li Keqiang identifies measures to deepen the VAT reform during an executive meeting of the state council on March 28,2018.The meeting decided to lower the VAT rate for the first time from May 1,2018,aiming to further reduce the tax burden on market players.On March 5,2019,premier Li Keqiang pointed out in his government work report that the VAT reform will be further deepened,and the VAT rate will be reduced for the second time on April 1,2019 to ensure that the tax burden of all industries will only be reduced without any increase.In view of the great significance of the above-mentioned reform to expand the scope of VAT collection and reduce the rate,this paper takes the expansion and reduction of VAT as the background and selects X construction company as the case study object.Firstly,based on the domestic literature and research results on VAT reform,this paper analyzes the advantages and disadvantages of.implementing VAT expansion and reduction.Then,through the financial data of X company,combined with the actual situation of X company,the impact of VAT expansion and rate reduction on X company is analyzed.This paper combines the rate reduction to be implemented on April 1,2019 to analyze and predict the financial impact of tax reform on X company,including tax burden,cash flow,profit,etc.,which is also the innovation of this paper.Finally,the problems faced by X company are analyzed according to these influences and changes,and corresponding countermeasures and Suggestions are put forward.