The Analysis Of The Financial Impact Of VAT Replacing Business Tax On Chinese Construction Enterprises

To be fair tax burden,simplified tax system,reasonable decentralization,China set off the reform of the tax system in 1994.This reform has established a new circulation tax system with standardized value-added tax as the main tax,business tax and consumption tax coordinated with each other,and the value-added tax and business tax are levied in parallel.In 2011,so as to meet the needs of the development of the market economy,optimize the economic structure,reduce the tax burden on enterprises,and solve the problem of repeated taxation of business tax,according to the Twelfth Five-Year Plan and the spirit of the Fifth Plenum of the 17th Central Committee of the Communist Party of China,the Treasury Department and the State Administration Of Taxation promulgated VAT replacing Business Tax.The pilot project has been launched since January 1,2012 in Shanghai for the transport sector and some modern service industries.As of May 1,2016,the State Council decided to include the construction industry,real estate industry,finance industry,life service industry into the scope of the pilot project,marking the total replacement of value-added tax business tax.The construction industry,which is included in the reform,is the pillar industry of the national economy.It has the characteristics of large number of enterprises,large scale of industry and wide range of industries,and has always levied business tax,the problem of repeated taxation,the enterprise tax burden is heavy.Therefore,the construction industry VAT replacing Business Tax,on the one hand,it is to improve the value-added tax system,deepen the reform of the fiscal and taxation system;on the other hand,it can solve the repeated taxation,improve the industry tax is not fair,it is beneficial to the long-term development.What is the impact of the construction industry VAT replacing Business Tax on the enterprise;and how to deal with VAT replacing Business Tax is a major issue in front of us.Through the collection and looking up the relevant information with theoretical and practical methods,this text first of all,based on the relevant theory of domestic AT replacing Business Tax and foreign value-added tax research introducing,the theory of taxation,value-added tax and business tax concept and characteristics,led to the course,content,meaning of VAT replacing Business Tax.And then elaborate the development of construction enterprises and the implementation of the VAT replacing Business Tax.Then,in order to analyze the impact of the VAT replacing Business Tax,the article takes the listed company Shanghai Construction Engineering as the research object and analyzes the influence of VAT replacing Business Tax from the accounting,financial statements,corporate tax burden and tax management.Through the calculation,VAT can reduce tax burden,but due to the construction industry material fee all obtain the special invoice difficulty,the labor deduction insufficiency,the project payment arrears phenomenon serious and several reasons so on,The actual tax burden is inconsistent with the theoretical tax burden.Finally,for the construction enterprises to spend this reform smoothly,improve economic efficiency,in the new market economy steadily issued a few suggestions.First of all,the enterprise leadership should pay high attentions to VAT replacing Business Tax,and to do a good job for all staff related to the new policy knowledge;professional training for financial personnel strengthen financial sector management;the same time,we must strengthen internal management,focus on supplier selection,improve the terms of the contract,timely purchase of fixed assets;finally strengthen the tax management,do a good job in tax planning work,reduce enterprise tax burden,achieve the goal of maximizing profits.