Study On The Financial Impact Of "Business Taxes Changed To Value-added Taxes" On Construction Enterprises

Since May 1,2016,China's construction industry,the real estate industry,financial and consumer services in China have been included in the scope of the pilot program of the business tax to value added tax(hereinafter referred to as "business taxes changed to value-added taxes(VAT)"),so far the pilot of VAT has fully implemented in China.The increasing financial impact of VAT on related industries and enterprises is a problem worth discussing while realizing the goal of tax cuts to the enterprises.Based on the background of the construction industry,this article,analyzing the financial impact of VAT on construction enterprises through theory and practice on the case of HMAZ Company,has a case study of the financial impact.This article reviewed the research products on theory and practice of business tax,corporate tax,VAT and so on.Besides,it theoretically analyzed the impact of VAT on business accounting,corporate tax and financial performance.Through the case of the case,HMAZ Company,which include the specific impact on financial indexes before and after VAT(including the profitability index,operation ability index,solvency index and cash flow index),the overall tax burden,accounting methods and effect analysis of specific items of the financial statements,confirmed that VAT has a comprehensive financial impact on construction enterprises.This article also puts forward some countermeasures and suggestions to deal with the influence of VAT on building enterprise HMAZ.First of all,strengthen the training of financial personnel,and enhance the professional quality of financial personnel.Secondly,adjust the internal structure of the company and set some projects as small scale taxpayers.What's more,adjust the purchase channels and become stricter in the management of invoice.The last but not the least,pay attention to the management of accounting and taxation and prevent the risks of accounting changes..All these countermeasures and suggestions can not only make the construction enterprises understand their own situation,strengthen their management,but also let them quickly adapt to various impact caused by the value-added tax.This study makes a deep theoretical analysis on the financial impact of business taxes changed to value-added taxes(VAT).And its research results are of more specific practice and guiding value in the construction industry.