Study On The Impact Of Replacing Business Tax With Value-Added Tax On The VAT Burden Of Xintai Construction Company

In order to eliminate the double taxation and reduce the burden of enterprises,the state decided to include the construction,real estate,finance and life service industries into the pilot project of replacing business tax(BT)with value-added tax(VAT)from May 1,2016,and the VAT achieved full coverage of the industry.In recent two years,in order to further reduce the tax burden of enterprises and stimulate the vitality of market entities,the state has successively introduced a series of tax reduction policies,such as reducing the VAT rate.As one of the pillar industries of the national economy,the construction industry is particularly affected by the policy because of its many intermediate links,wide range and complex business.Some construction enterprises are affected by such adverse factors as the difficulty of deduction.After replacing BT with VAT,especially in 2018 and 2019,the growth pressure of VAT burden is still greater than that of BT.Therefore,it is more urgent and practical to analyze the VAT burden of construction industry.This paper takes the VAT reduction policy issued after replacing BT with VAT especially in recent two years as the background,takes the VAT burden of Xintai Construction Company in 2018 and 2019 as the research object,and on the basis of full investigation,calculates the tax burden of the case enterprise from the theoretical and practical aspects.From the theoretical point of view,it can be concluded that the VAT burden of case enterprise in 2018 and 2019 will be significantly lower than that of BT,but the actual VAT burden will rise instead of falling,which does not meet the expectation of case enterprise tax reduction.Secondly,the paper analyzes the reasons for the rise of case enterprise VAT burden,and finds that the main problems in the process of implementing the policy are unreasonable selection of suppliers and subcontractors.irregular invoice management and declaration management,and low tax related business capacity.Finally,based on the existing problems,this paper puts forward some countermeasures,such as strengthening the management of suppliers and subcontractors,improving the input tax deduction and so on.to help Xintai Construction Company and similar construction enterprises to better achieve tax reduction goals.