Coping Measures Of Reconstructing Value - Added Tax On Business Tax In Construction Industry

The industries and enterprises which reap the benefits from the tax system reform are increasing along with the enlargement of the VAT’s levy scope that changed from business tax are expanding continually, which started from January 1st 2012, the new tax policy was activated in transportation industry and some modern service industry of Shanghai at first. Construction industry which has played a very important role in promoting the rapid growth of national economy will be also involved in the tax system reform finally during the process of self-improvement of the reform. Even if it is not belong to the levy scope of VAT now due to the complexity of the industrial chain which means that it’s hard to carry on the tax system reform in construction industry.This thesis will take construction enterprises into consideration, as a case presentation, the reform will be approved and supported by comparative analyzing the similarities and differences between VAT and business tax. And some practical and reasonable suggestions will be put forward based on the impacts and difficulties of the construction industry in the process of tax reform.