Construction Business Tax Changes VAT Problem Analysis In Our Country

The12th five-year plan—deepen the reform of the fiscal and taxationinstitutional—put forward:"Eexpand the scope of value-added tax and decrease thebusiness tax and other tax are the keys of the tax system reform over the next fiveyears. Following Shanghai becoming the pilot city of Business tax paid VAT intransportation industry and part of modern service in2012, industry tax paid VAT inthe same area has spread to the whole country from August2013, which kick off thecurtain of the business tax paid VAT officially. As the guiding and foundationalindustry of the national economy in our country,construction has the characteristicsof high society correlation degree and strong employment absorption capacity, andthen plays a very important position and role in the economic and social development.But the tax arrangements for construction imposed business tax for a long time, hasseverely hampered the healthy development of it, which mainly displays in the doubletaxation and no specification management. The tax change paid VAT pilot program(cai shui [2011] No.110) makes the change in construction business tax levy VAT onthe reform agenda. But the reform has been temporarily suspended because of all sortsof difficulties and pressure in practice. Business tax paid VAT in the constructionindustry will face more complex environment and more prominent issue. Therefore,this article attempts to analyze the main problems about the business tax paid VAT inthe construction and propose the corresponding references, to provide certain supportfor the smooth implement of business tax paid VAT in construction.This article analyzes the basic concepts of change in construction business taxpaid VAT and the necessity and feasibility, and uses the experience of the foreignconstruction VAT for reference. It probes the main problems of our country businesstax paid VAT instead and smooth implementation of the required supportingmeasures.This article is divided into six parts:The first part is introduction. It mainly includes background and significance ofthe research, literature review, methods of research, basic structure, the innovationand deficiency.The second part analyszs the necessity and feasibility of construction business taxpaid VAT. The article elaborates the necessity from three aspects, including the chainof the VAT deduction, social operation cost and the development of constructionindustry; The-feasibility of the reform mainly includes the existing constructionbusiness tax policy and related industries providing the experience of business tax paid VAT and the development of modern information technology.The third part defines the related concepts in regard to construction business taxpaid VAT, put forward the principles and theoretical basis of construction businesstax paid VAT, which tax reform must adhere to.The fourth part introduces South Korea, Russia and India, which impose thevalue added tax on construction industry and which have close links with our countryin geographical position and economy.It provides certain reference for our country inconstruction business tax paid VAT.The fifth part is the core. It analyzes taxpayers, tax rates, calculation of the outputtax, income tax deduction, tax payment period, tax payment place,etc.The sixth part analyzes the supporting measures in accordance with the need ofconstruction business tax paid VAT, including that the group taxpayers is introducedinto the system of tax collection and administration, network information tracking,invoice management three aspects.