Analysis On The Effect Of The VAT Replacing The Business Tax In Construction Industry

May 1st,2016,in order to develop “change sales tax into value-added tax(VAT)” in domestic,the State Council to promote industrial and consumer upgrades,cultivate new energy,reduce enterprise tax burden,deepen the supply side of the structural reform of the overall reform of the significant decision to deploy.In this paper,I take construction industry " change sales tax into VAT" as the research object,after combing the construction industry " change sales tax into VAT" on the main content and theoretical basis,there is an analysis of development of the construction industry and level of tax,the results show that the high output value of construction industry support the development of domestic national economy,while there is a high Intermediate input ratio in the construction industry,with the lower profit margins of output value,heavy tax burden,is not conducive to the expansion of the construction industry and the accumulation of corporate capital.After there are analysis on the Effect of the VAT replacing the business tax in Construction Industry,including the tax reduction effect,the impact of enterprise management,the impact of local revenue and collection and management.The study shows the construction industry’s tax burden will be reduced significantly after the VAT replacing the business tax in Construction Industry,standardize the enterprise management,optimize the industrial structure;but to the local fiscal revenue brought pressure,and the proportion of value-added tax adjusted to50%:50%,which is conducive to the central and local financial structure of the overall stability;the same time,to strengthen the tax collection and management,reducing the cost of registration,and in the "increase" policy implementation process,optimize the tax services.Of course,due to the shortening of the “change sales tax into VAT" and the special nature of the construction industry,in the implementation process of construction industry policy,the construction enterprises and grass-roots tax authorities all will confront a lot of problems,Such as,construction enterprises are faced with the difficult to obtain VAT invoices;and fundamental tax authorities are faced the problem how to strengthen the tax collection and management,as the reason need to ensure that the tax is reduced rather than added,the existing policy retained a large number of simple tax,gap ratio of collection and other provisions,and at the same time there are different tax rates,levy rate and prepaid rate,as a result,there will bring a lot of troubles to the tax authorities.At last,I come up with reform proposals of “change sales tax into VAT",in order to promote the healthy and sustainable development of the construction industry.First of all,improve design of the value-added tax system,in accordance with the principle of tax neutrality to build a scientific and efficient value-added tax system;as second[y needs to strengthen the construction industry tax source monitors,and fully dig out the accurate and reliable tax source,regulate tax behavior of the taxpayers.Third,standardize the management of enterprise,through improving the level of financial accounting and improve management,increase the economic efficiency of the construction industry,improve the market competitiveness of enterprises.Fourth,the recommendations of the government departments.The taxation department should increase the tax service through the tax collection and management throughout the tax collection management,while the government should also improve the relevant policy supporting design after the VAT replacing the business tax.