Study On The Financial Management Impact Of "Business Tax To VAT" On TZ Construction Company

On March 5,2016,Premier Li Keqiang proposed in the report of the government,from May 1,2016 onwards full implementation of "replacing business tax with value-added tax(VAT)",Construction industry isalso one often industries of the replacement of business tax with a VAT for this time.China's construction industry is a key mainstay industry for nationaleconomy,it has profound influence on the long-term development of national economy.The business tax that being implemented for many years,thus management of construction industry is relatively extensive and phenomenon of contract completely substituting administration is quite common.The input tax deduction feature of value-added tax requires enterprises to make meticulous management on suppliers and invoices.In addition,the tax-involved risk of enterprises also increases obviously,thus the original management mode needs to be reformed for adapting to the new conditions.Replacement of business tax with a VAT,as a whole,is a good thing for construction industry as it has solved the problem of repetitive taxing,lowered tax bearing of the industry,is helpful for the upgrading of enterprises' management,prompts their achievement of transforming from the extensive business pattern to intensive business pattern and accelerates them to become bigger and stronger.If the enterprises do not react actively,it will cause great risk such as invoices,financial accounting,so how to enjoy the dividends of reform,is the first problem for construction enterprises to solve.According to the new situation of the VAT system,based on the related theory,on the analysis of the case of construction of enterprise financial management,cost management,income tax situation,from the comprehensive tax,accounting,financial management and tax risk analysis of four aspects of replacing business tax with value-added tax(VAT)impact on the financial management of TZ company,the text puts forward the corresponding measures,but also give some suggestions on government policy,hoping to make construction enterprises smoothly through the "replacing business tax with value-added tax(VAT),help enterprises to improve its long-term sustainable development mechanism,promote the development of the construction industry.