A Case Study On The Impact Of"Replacing Business Tax With VAT"on The Tax Burden Of Chinese Realty Enterprises Takes BL Realty Company As An Example

Since the successful implementation of the value-added tax in the 1950 s,its advantages of avoiding double taxation and promoting the balance of tax burdens are widely recognized by all the countries of the world.However,although the value added tax system was introduced in the 1970 s,its development history in China is not smooth,and the coexistence between business tax and value-added tax is constantly restricting the improvement of taxation system and further development of the economy.After several major reforms,the "replacing the business tax with a value-added tax" implemented in all industries nationwide in May 2016 finally eliminated the coexistence of two taxes,and the business tax was officially withdrawn from the historical stage.The goal of "replacing business tax with VAT" is to enable all industries in China to achieve structural tax cuts and create a level playing field conducive to the development of enterprises.However,the impact of "replacing business tax with VAT" on various industries is different.For exploring the specific impact of "replacing business tax with VAT" on the tax burden of different industries,this paper chose one of the most important industries in China,the realty industry,as the industry research object,and chose BL realty company as the specific case analysis company.Through necessary calculation,this paper conducted an analysis on the impact of "replacing business tax with VAT" on the tax burden of China's realty industry and put forward corresponding suggestions and measures.This paper first reviews the research on "replacing business tax with VAT" by domestic and foreign scholars.The foreign literature mainly focuses on the research of the VAT system and the realty tax methods.The domestic literature focuses on the impact of tax burden after "replacing business tax with VAT" in other industries,as well as the theoretical research and prediction of "replacing business tax with VAT" in realty industry.Secondly,this paper briefly expounds relevant concepts of "replacing business tax with VAT” and provides theoretical basis for why China can carry out this tax reform,mainly including: tax neutrality theory,tax fairness theory,optimal tax theory and tax burden shifting theory.Thirdly,this paper briefly expounds the development status and main features of China's realty industry,makes a brief analysis of the impact of "replacingbusiness tax with VAT" on the industry,and puts forward a brief calculation method for how to measure the impact of replacing business tax with VAT on the overall tax burden of the industry.This paper mainly measures the impact of "replacing business tax with VAT" on the realty industry in China from four aspects: the change of turnover tax,the change of urban construction and education additional tax,the change of enterprise income tax and the change of total tax burden.Fourthly,this paper uses the actual financial data and project data of BL company to carry out case analysis,and the result of calculation shows that "replacing business tax with VAT" can play a positive role in tax reduction for the company.Finally,this paper puts forward corresponding suggestions on how Chinese realty enterprises should seize the opportunity of tax reduction brought by"replacing business tax with VAT",in the hope of providing some reference for Chinese realty enterprises to get better development after "replacing business tax with VAT".