The Study Of The Influence To Replacing The Business Tax With VAT On ZP Road&Bridge Construction Ltd.

On May 1,2016,China’s business tax became history and was fully converted to VAT.It has been several years since the idea of “Replacing the Business Tax with VAT”,the formulation of plans,and the implementation of trials and comprehensive promotion.The construction industry’s “Replacing the Business Tax with VAT” has always been an important aspect of the implementation of this policy.Due to the characteristics of the large-scale construction industry,wide-ranging operations,and diversified business models,the full implementation of the “Replacing the Business Tax with VAT” has had a huge impact on the construction industry.After the tax reform,in theory,the construction industry can eliminate taxation due to the elimination of taxation,so as to reduce taxation,improve the market competitiveness of the enterprise,promote the integration of the construction industry and its upstream and downstream industries,form a healthy industry standard,and maintain the normal construction market.Improve the level of internationalization.The construction industry occupies a large proportion in China’s economy.Reducing the tax burden on construction companies can play a major role in the transformation of China’s economic industrial structure and economic development.Therefore,it is of great practical significance to study the influence of "Replacing the Business Tax with VAT" on the tax burden of construction companies.This paper selects ZP Road&bridge Construction Ltd.as a case group by studying related literature and theoretical basis.In-depth study of its financial reporting tax burden.analyzing the main factors affecting the "Replacing the Business Tax with VAT" is the value of tax sales tax rate;income tax business;input tax amount.After May 1,2016,the general taxpayer’s tax rate for the construction industry is tentatively set at 11%.it is further analyzed that when the value-added tax input tax accounted for 6.88% of the tax-included operating income,the tax burden is equal before and after the “Replacing the Business Tax with VAT”,when the tax revenue is less than 6.88%,the tax burden is negative.Increased,higher than 6.88%,tax burden decreased.Through calculations,the case group can theoretically reduce taxes,but the actual report data is increased by 45.2%.The analysis of the reasons can be divided into four problems: the difficulty of obtaining input tax receipts,the unreasonable existing cost structure,the unsound internal control system of the Group,and the highvalue-added tax rate.In response to these situations,the author gives a corresponding response strategy.Expect this study can help case group.