Study On The Influence And Countermeasures Of Replacing Business Tax With Value-Added Tax On Construction Enterprises

For a long time,the tax collection policy implemented by the taxation department of China has been mainly a concurrent policy of business tax and value-added tax.Although the tax reform in 1994 and the VAT transition in 2009 have promoted economic development in a certain period,but with the changes of the times,The shortcomings of the incomplete reforms in the past have become more obvious.In recent years,Chinese economic development direction has shifted from extensive and quantitative growth to intensive and consistent growth.The shift in the economic center of gravity and the changes in pillar industries have all placed urgent demands on more targeted tax reforms.Most of the industries that have historically been within the scope of business taxation are gradually replacing traditional industries to become new heights for China’s economic development.The construction industry is a typical example.As a traditional business taxpayer,while the construction enterprises continue to maintain high sales growth year after year,the phenomenon of double taxation has become increasingly serious.This runs counter to Chinese current national economic development direction and industrial restructuring policy.Based on the above reasons,the state taxation department promptly pushed forward a new round of taxation reform for the unreasonable part of the taxation system.The research topic of this paper is the influence of" replace business tax with VAT"on the construction industry enterprises and the corresponding countermeasures.And H Company is selected as a real case to analyze the research topics.Firstly,we laid the foundation for the research work through relevant literature and taxation related theories in China and abroad,analyzed the status quo of the construction industry and the impact of the“replace business tax with VAT" as the macro background,and then used H construction companies as examples to The detailed analysis of the changes before and after,mainly through the four aspects of tax burden,accounting,financial management and business management.The main effect of taxation is to compare the changes in the tax burden before and after.The impact of accounting on the changes in the types of taxes due to changes in the "business-to-business-increment" has led to a corresponding change in accounting subjects and increased the complexity of accounting methods.The impact on financial management lies in the fact that,after the"replace business tax with VAT" of a construction company,the method of recording the assets changed from total price tax to deductible value-added tax input tax,and the operating income was also changed to the amount not including the VAT output tax amount.Accounting will affect the overall capital management and cash flow of the company.The impact on management is related to various aspects of the daily business activities and operations of construction companies,such as the bidding of construction projects,project subcontracting,material procurement and equipment management and other changes.Through the above research,this paper has mainly reached the following conclusions:after the introduction of "replace business tax with VAT",H company has reduced its tax burden;changes in accounting methods,and an increase in cash flow have also brought new financial management to enterprises Challenges;In addition,the"replace business tax with VAT " has also had an impact on corporate management,and put forward new requirements for financial auditing,invoice management,tax management,business model,and contract management;As well as policy dividends and new challenges in response to "replace business tax with VAT",the entire construction industry,including H Company,needs to attach great importance to the use of national policies,enjoy tax incentives,and rationally conduct tax planning.