Research On The Policy Influence And Countermeasures Of The "VAT" In Construction Industry

The Ministry of Finance and the State Administration of Taxation jointly issued the document:the full implementation of the "VAT" will be comprehensively promoted from May 1 of 2016.After the "VAT",construction enterprises began to levy value-added tax.The input tax of the procurement can be deducted,value-added tax deduction chain becomes complete.It theoretically can avoid the problem of repeated tax of construction enterprises,reduce the tax burden and improve the competitiveness of enterprises.However,both the construction enterprises and the tax authorities are facing problems in the early and real implementation of the policy.How to deal with the new policy of the "VAT" has its significance of this study.This paper first briefly describes the comparative changes in tax reform system based on the "VAT" policy,and calculates the relationship between the cost deduction ratio and the tax burden of the construction enterprises after the "VAT"with the formula and model.Then,this paper conducts comprehensive and deep analysis and exploration combined with the one-year taxation and declaration data from construction enterprises in Ningbo.Taking ZJ construction enterprise as an example,the paper analyzes the influence of "VAT" on construction enterprises through the case study method.Through the empirical analysis of the impact of the construction enterprises on the tax burden,it is found that the tax burden of construction industry has decreased,but some enterprise has increased in the short term.By analyzing the reasons for the increase of tax burden,it further explains the problems and risks in the construction industry after the "VAT".At the same time,owing to the more complex tax system,larger elasticity of tax burden and the larger planning space of added-value tax,strengthening management and reasonably planning can actually reduce the base of taxation for the enterprises,therefore,making full use of the policy of "VAT" to reduce the tax burden is practical with realistic significance.This paper puts forward constructive comments from the views of the enterprises and government agencies to provide a certain reference for the promotion of the "VAT" in construction industry and the improvement of value-added tax system.