Research On The Impact Of The VAT Reform On The Tax Burden Of The Construction Industry

Replacing the business tax with a value-added tax is an essential measure taken by tax reform in the 12th Five-Year plan,it plays an important part in Promoting the development of national economy and Perfection of tax system.With the expansion of Replacing business tax with value-added tax(VAT)pilot range,replace the business tax with a value-added tax in construction industry begins at 2016,and relevant research is still at the initial stage.As an important guarantees for the national economy,how construction industry takes advantage of policy superiority,holding the chance and reducing the tax burden would draw heated discussions between the Academic and practical circles.This paper based on the perspective of how replacing the business tax with a value-added tax accounts for tax burden of construction enterprise,summarizing the development of construction industry and the policy,and combing the literature of domestic and foreign scholars as well,from which this paper found that previous research mainly relayed on industry data to promote relevant research,while there is short of case study.Therefore,it is of great value to adopt case study method to make a explicit analysis of X construction enterprise,based on both of circulation tax and income tax,this paper found that corporate income tax burden would show a smaller decline,but circulation tax burden would show a sharp rise,in other words,overall tax burden of X construction enterprise would rise.To avoid negative influence,this paper offers some suggestions as follows:to pay tax on a consolidated basis,enhance supply chain management,improve the skills and level of financial accounting,expand the scope of the input tax deduction,and actively explore overseas markets.