Tax Burden Research Of "Replacing Business Tax With Vat" Reform On Construction Industry

The added-value tax(VAT)is widely adopted by many countries with the rapid development of social economy."Replacing Business Tax with VAT" is not only the response to the theme of tax reform in 12 th Five-Year Plan,but also contact with the international practice.Actually,in generally speaking,“Replacing Business Tax with VAT” is imperative and natural.Under this irresistible trend,China’s tax system reform is opening a new chapter and VAT will finally replace the business tax on May 1st 2016 with fulfilling this policy in construction,finance,housing,and living service.The construction business will be inevitably affected by various aspects as an important part of the four industries.Such as the tax burden,capital flow,business model,internal management system and so on.One of the most direct impacts is the corporate tax burden among all the aspects.As an important material production sectors in national economic system,construction business not only has close connection with the whole country’s economic development and the improvement of people’s life,but also has been a huge role in regulation from two aspects of material production and economic composition.Therefore,the tax burden research of “Replacing Business Tax with VAT” reform on construction industry is directly related to the construction and improvement of the tax system in the whole economy.As we know,the business tax is the main tax in the construction business before “Replacing Business Tax with VAT”.The selection of material suppliers,the purchase plan of fixed assets and the improvement of business model does not have great influence on the tax burden under the circumstances.However,whether the enterprise can fully deductible input tax is directly related to the amount of the tax burden of enterprises as it has many strict regulations on inputting credit.Obviously,it has a significant and direct impact on the economic benefits of the enterprise.Therefore,the author chose it as the topic orientation in this paper.Wishing the research and analysis of this paper can provide some suggestions and references for the construction enterprises to deal with it.Based on the above background and reasons,the author chooses the changes of tax burden to be the starting point in this paper.This paper analyzes the impact of the construction business on “Replacing Business Tax with VAT” from two aspects of theory and Practice,this paper chooses CD Construction Group as an example.And it selects three projects of the “Ri Yue” road,the “Qing You” road and the “Zhi Ye” school as research samples.We found that the tax burden on construction enterprises has increased by comparing the results of the analysis.For this influence and change,as the focus on the national economy construction enterprises should take what kind of measures is the content of this article.The author found these samples bring lots of limitations to this study because of many objective factors with the development of research,such as the range of selection,the randomness of selection and the limitations of these samples.At the same time,the policy will continue to revise and improve itself with the implementation of the policy.These objective factors make this research can’t fully reflect all the tax burden changes and impacts within the procedure of “Replacing Business Tax with VAT”.Therefore,there are still some deficiencies in this paper.