Research On The Influences Of Replacing Business Tax With Value-added Tax On Construction Enterprises

Business tax in construction industry of China has been comprehensively changed to VAT (Value-added tax) on May 1, 2016. The tax calculation, tax payment, invoicing drawing and tax system design of VAT is essentially different from business tax. After the reformation, construction enterprises are facing many problems in practical production and management activities,including the construction cost and valuation accounting inaccuracies, improper accounting, purchase and VAT deduct chain is not complete. If the problem cannot be solved as soon as possible, taxes of construction enterprises taxpayers will be increased. Eventually, it will lead to heavier burden on enterprises.Therefore, it is important to analysis the influence of VAT policies on project cost management, project valuation system, accounting, tax management on the construction enterprises, and propose effective countermeasures.Based on the description of current situation and characteristics of construction industry, this paper compared domestic and international situation of scope expansion of the VAT. Firstly, and describe the disadvantage of co-existence of business tax and VAT and the relevance and necessity of replacing business tax policy with VAT. Then, through the establishment of the model of cost decrease and decrease of tax burden, this paper Analysis balance and sensitivity of the project costs change to construction enterprises, And describes the change on valuation system of construction enterprises from five aspects,which is valuation method adjustment, valuation element price adjustment, quota bace-price adjustment, cost quota adjustment, and valuation index exponent adjustment. Then this paper researched the influence of accounting on construction Enterprise in from three aspects, which is purchasing assets in business accounting, carrying-over at the end of a month, and tax accounting.Simultaneously, this paper researched the influence of accounting on construction Enterprise from three aspects, which is labor and employment cannot be offset, the difficulties of equipment spending to offset, material expenses cannot be offset, and the influence of project bidding, contract management, purchasing management. Finally, this paper proposed countermeasures for enterprises to replacing the business tax with VAT from six aspects, which is strengthening the management of engineering materials,improve the engineering contract model, strengthening the management of tax planning, Establish the tax management system, adjust project contract, and service subcontract management.