"Switching Business Tax To Value Added Tax," Effect And Countermeasure Analysis Of The Y Project

The comprehensive reform of "Switching business tax to value added tax" started with the accession of the construction industry.For SJ Company,"Switching business tax to value added tax" is full of uncertainty,it is the chance and also challenge at the same time,although value-added tax can be used to deduct tax,but the tax deduction work is a long process.According to recently analysis,company's undertaking taxes will be raised.But In the long term,promoting the " Switching business tax to value added tax " is conducive to reduce the tax level of construction industry,accelerate the rising of production level in construction industry,promote the implementation of excellent management mode of SJ company and also speed up company's growth.In this paper,I will use SJ company's Y project to analyze the impact of "Switching business tax to value added tax",the analysis comes from below three aspects.The first aspect is the influence of different tax counting options.Based on the Y project of SJ Company,analyzed company's beneficial value according to four different taxes counting method by considering the time value of money in two forms,and chose the most advantageous way for enterprises.The second aspect is the impact of company's business model.Discussed project operation mode of SJ Company before and after implementing "Switching business tax to value added tax".Expounded the reason of effect and influence of value-added tax reform,the original operating mode and BT project management which will lead to high risk to the company.Provided solution for avoiding the difference between cash flow,invoice flow and contract flow of the BT project during procurement and business operation.The third aspect is the influence to the company's organizational structure.Take SJ Company as an example described current status of organizational structure and the dilemma after reforming." Switching business tax to value added tax " has reshaped the organization.In order to reduce the tax cost of the project,standardize business processes,from the legal,compliance and reasonable aspects,put forward the adjustment and optimization method of future organization's construction.Study of this paper comes out the conclusion as follow:If the amount of input tax on the item purchased is higher than 44.49%,the VAT should be chosen as the general method of tax assessment.If it is lower than that,the method of simple tax should be chosen,which will be more beneficial to the cost of the project.The project to obtain more input tax deduction,procurement of materials should be according to the actual situation of the "collective bargaining,contract,payment unit or units","internal sales units" or "centralized bargaining contract" to execute centralized payment and centralized purchasing for gravel materials.At the contract negotiation stage of BT project,change business model,to set up an item company or a consortium of owners of the model for the owners or the company and the contractor,to avoid tax reform after the tax risk.