A Study On The Tax Control Of Business Tax To Value-added Tax Transformation Reform Of Construction Enterprises

The parallel tax system pattern of Value added tax and Business tax has been established in our country as early as in 1994.With the establishment and development of the market economy,this kind of pattern is more and more unsuitable for our country.Therefore tax reform becomes more important.In January 1st,2012,transportation industry and part of the modern service industry in Shanghai began the change from Business Tax to Value-Added Tax.From August 1st,2012 to the end of 2012,Beijing,Jiangsu,Zhejiang and other eight provinces and cities had incorporated into the scope of transportation industry and part of the modern service industry pilot.Up to August 1st,2013,transportation industry and part of the modern service industry had been extended to the whole country.In 2014,railway transportation,postal communications and telecommunications practice across the country had been in succession to increase the change from Business Tax to Value-Added Tax.By the end of 2015,except the construction industry,finance,real estate and life services,other industries had completed the reform of the change from Business Tax to Value-Added Tax.In March of 2016,the state council decide to complete the change from Business Tax to Value-Added Tax in the rest of the four industry on May 1st,and the nationwide tax reform of the change from Business Tax to Value-Added Tax completely done.With the research of a large number of literature materials at home and abroad,finding the research is most of the influence of the change from Business Tax to Value-Added Tax to the industry and the necessity of the change from Business Tax to Value-Added Tax,less of tax control.Construction industry involves in many aspects,wide,and complex and the engineering projects are diverse.For construction,the change from Business Tax to Value-Added Tax is not a simple tax system shift or change the way of financial accounting,but the major changes affecting the enterprise development strategy.So it is necessary to give a further research in the problems of tax control of the change from Business Tax to Value-Added Tax of construction industry.Based on the the change from Business Tax to Value-Added Tax of construction,through the analysis of current situation and problems of the change from Business Tax to Value-Added Tax in "the unity of four circulations" tax control of construction industry,concluding the tax control scheme for the construction industry.Take China state construction as an example,explain how to run the tax control of the VAT "the unity of four circulations" in the enterprise.This paper mainly adopts the method of theoretical research combined with case analysis to research the tax control problem of the change from Business Tax to Value-Added Tax in construction.The first part of this paper,introduces the research background significance of this article from theory and reality.The second part is theoretical interpretation from the perspectives of the change from Business Tax to Value-Added Tax and planning theory of tax,based on related theory of Business tax,VAT,the change from Business Tax to Value-Added Tax and the difference and Business tax and VAT.Compared with Business tax,analyze the priorities of VAT and the necessity of fully implementing the change from Business Tax to Value-Added Tax.The third part analyzes the influence of the tax policy of "the unity of four circulations" and the change from Business Tax to Value-Added Tax on the construction enterprises.From the macroscopic level,fully implementing the change from Business Tax to Value-Added Tax can make the enterprise form a complete buckle chain,improve the quality and efficiency of the supply system,upgrade the enterprise transformation.Well,from the micro level,after the change from Business Tax to Value-Added Tax,information regulation is more and more strict.But the change from Business Tax to Value-Added Tax involves the whole process of enterprise management,upstream and downstream enterprise are closely linked.The fourth part,from four aspects: contract management,invoice management,logistics management and capital management to analyzing the problems existing in tax control of the construction after the implement of the the change from Business Tax to Value-Added Tax.In the contract management,there are main problems of engineering materials sales contract," clear the contractor " contract,black and white contract issues and the EPC contract;In the invoice management,there are main problems of subcontracting,the criterion of material procurement market,and the difficult VAT invoice authentication;In the logistics management,there are main problems of engineering construction and tax subject inconsistent and engineering supplied the material by the construction side;In the money management,there are main problems of all overdue payments related to input tax and not deductible VAT in time.These issues will lead to the disagreement of four circulations,including contract flow,logistics flow,capital flow and invoice flow.In turn,lead to not fully deductible VAT on purchase,increasing the tax burden of enterprise itself.The fifth part,aiming at the problems in construction,comes up with a tax control scheme of "the unity of four circulations ".Only conforming to the fourth-rate consistent of the contract flow,cash flow,logistics flow,capital flow can declare deduction of VAT amount of invoice.Therefore,in order to make sure the "the unity of four circulations " of VAT,construction enterprises need from the contract,invoice,logistics,financial,tax control that four aspects to supervise.Due to the large amount of information of VAT tax in the construction and the characteristics of scattered project department,and the strict collection and management auditing system of contract flow,logistics,VAT invoices flow,cash flow "the unity of four circulations" from the state to construction,only information can be a good response to the risks of the change from Business Tax to Value-Added Tax bringing to the construction.The sixth part,explains how tax control scheme of "the unity of four circulations" of VAT runs in construction enterprise with the actual case.