Analysis Of The Impact Of "Business Tax To VAT" On XGM Real Estate Company And The Countermeasure

The change of business tax into value - added tax is an important change in the history of China's tax system , which has not only played a huge role in promoting and perfecting the tax system in our country but also for China's construction and improvement of the socialist market economy paved the way. Business tax to VAT to promote the development of China's national economy, and promote the optimization and upgrading of China's industrial structure, so that China's tax structure can be with international standards, has an important role. This is a far-sighted, focused future reform,the future development of China's economy has played a guiding role. The real estate industry shoulders the important task of increasing the state tax, stabilizing the national economy and improving the people's living standard. Since the reform of the business tax to VAT has been implemented, the Chinese government has planned and piloted the planned work. As of May 1 last year, the "battalion" has basically completed the established target and achieved nationwide coverage, this article to this as the background, through practical cases to explore the "Business tax to VAT. on the impact of enterprises, and the corresponding countermeasures.Firstly, In this paper, XGM company A real estate development project as an example, to analysis the tax-related case of real estate company before "Business Tax to VAT" And then calculate the XGM real estate company's overall tax burden level changes. And then calculate the XGM real estate companies should pay the VAT.Secondly,this paper comparing the company tax burden changes estate of XGM real company before and after" business tax to VAT " To the specific analysis The reasons for the change in tax burden of XGM real estate company after "Business Tax to VAT"and the impact of "Business Tax to VAT" on XGM Real Estate Companies Tax Burden.Land costs, government fees and the Initial inventory and the purchase of housing and other projects of the deduction of the problem, making XGM real estate company tax burden than the "Business Tax to VAT" before much higher. At the same time,after Business tax to VAT the company's management did not make the appropriate changes in management there is a big omission, VAT invoices for the acquisition and management is not standardized, resulting in a lot of deductible input tax is not timely deduction,increased corporate tax burden. At the same time, the real estate industry special sales model also makes the tax in advance to pay a large number of enterprises to take up the flow of funds,affecting the company's cash flow,but also to a certain extent,to bring losses to the enterprise.Finally, on the basis of the previous text the author propose some response measures for the XGM real estate companies in the face of Business Tax to VAT" after the tax changes, XGM real estate companies should strengthen the internal control and invoice management optimize the procurement method,control investment costs,rational use of tax planning and control investment costs.