The Study On The Effect Of Replacing Business Tax With Value-Added Tax To TY Construction Enterprise

With the arrival of 13 th Five-Year,the transformation from business tax to VAT has entered a crucial stage.On March 23,2016,the Ministry of Finance and the State Administration of Taxation jointly issued “Notice of the Ministry of Finance and the State Administration of Taxation on comprehensively pushing the pilot of the business tax reform VAT”(Fiscal [36] in 2016).The notice made it clear that on May 1,2016,the transformation from business tax to VAT will implement to all industries,and all enterprises added real estate will be included in the scope of VAT deductible.Since then,the business tax exits.This paper analyzes the influence of "replacing business tax with VAT" in construction industry through tax burden,financial accounting and management.Combined with TY construction enterprises encountering "replacing business tax with VAT",and puts forward own proposal for construction enterprises to deal with the problem.This paper is divided into six chapters.The first chapter is the introduction including the research background and significance of increasing expansion of VAT,and scholars' papers about "replacing business tax with VAT" at home and abroad.The second chapter introduces the basic situation of "replacing business tax with VAT" in our country and the results of the reform.The third chapter describes the basic situation of the construction industry including double taxation under the system of business tax and facing the financial management,accounting and organizational structure and other aspects of the challenge nowadays.The fourth chapter discuss about the actual situation of TY Construction Engineering Company Limited,mainly consisting of insufficient input taxes,the risk of tax and other issues and the reasonable solutions.In the fifth chapter,I offer some proposals for the future management of construction enterprises according to theactual effect of "replacing business tax with VAT".The sixth chapter is the conclusion,it summarizes the necessity of "replacing business tax with VAT",the countermeasures and the present achievements.