A Study On Internal Control Improvement Of China Railway Seventh Bureau Second Company Under The Background Of "Replacing The Business Tax With Value-added Tax"

With the full implementation of value-added tax,business tax has been withdrawn from the historical stage.The reform of VAT replacing business tax increases the tax risks faced by enterprises,while also improving the external supervision requirements.The change forces enterprises to improve internal control and strictly respond to it.For the traditional construction industry,this tax reform is both an impact and an opportunity.Under the background of tax reform,the construction enterprise has to take the internal control of VAT and replace the extensive management with fine management,so as to turn the impact into the opportunity.We explain the interaction between tax reform and internal control,enrich the theory of internal control.At the same time,we optimize the internal control of the construction enterprises under the background of "replacing the business tax with value-added tax",and provide guidance for the real tax breaks.Based on the accurate grasp of tax reform theory,construction tax policy and the relationship between tax reform and the internal control,we analyze VAT tax process of the company project,measure the tax burden,and find a series of internal control problems.The company’s internal control has not kept pace with the reform of"replacing business tax with value-added tax",which is an important reason for the company’s failure to enjoy the benefits of tax reduction.Therefore,it is imperative to improve the internal control of VAT.Firstly,we should identify the key control points of VAT.Then,to adopt the whole process control measure covering each link,from the input side and the output side respectively.At the same time,to make full use of information technology and optimize the VAT management information system is important,which can improve the control efficiency and effect of tax risks.