Research On VAT Tax Planning Of JA Construction Company Under The Background Of VAT Reform

In the report of the 19 th National Congress of the Communist Party of China,General Secretary Xi proposed the requirement of "no speculation in housing",which has cooled the overheated real estate industry in recent years,thus indirectly affecting the construction industry.Therefore,it is particularly important for the construction industry to meet the challenges,strengthen the tax planning of construction enterprises,reduce the tax burden and increase the profits of enterprises.Since 2012,the state has gradually promoted the policy of replacing business tax with vat with Shanghai as a pilot.In 2016,"replacing business tax with value-added tax" changed the business tax rate of the construction industry from 3% to 11%of the value-added tax rate,improving the deduction chain of the construction industry turnover tax.From May 1,2018,the tax rate of value-added tax in construction industry has been reduced from 11% to 10% again.From April 1,2019,Announcement No.39 on deepening relevant policies of value-added tax reform has adjusted the tax rate to 9%.This series of reform measures have brought opportunities and injected vitality into the development of construction enterprises.Under the background of deepening the VAT reform,this paper selects JA construction company,which is a representative and quite large-scale local company,as the research object.First of all,it expounds the related concepts and theories of VAT and tax planning.Through literature research,field investigation and exchange,and comparison of the past years and the current tax situation,it is found that JA construction company has some tax burden after the implementation of VAT reform Increase.Secondly,through in-depth investigation and summary of the main reasons for the increase of tax burden of JA construction company,including the high tax rate caused by the undivided EPC contract in the signing process of the contract,the less input tax amount of value-added tax obtained from the material price,equipment rental cost and labor cost in the process of construction,which leads to the increase of value-added tax payable.Thirdly,according to the deficiencies exposed in the main projects and actual tax business of JA construction company,starting from the establishment of institutions,the contents of signed contracts,the way of construction settlement and other links,combined with the latest value-added tax preferential policies,the EPC contract signing,material procurement mode,labor cost selection and other businesses of JA constructioncompany are adjusted and optimized,and it is proposed to meet JA construction The company's actual situation of VAT tax planning program.Finally,the paper puts forward some effective measures to further ensure the smooth implementation of the company's value-added tax planning,so as to reduce the planning risk while increasing the after tax income.