A Study Of The Effect Of Business Tax With Value-added Tax On The Building Industry Tax Burden

January 1,2012,China began to expand the value-added tax reform in Shanghai and carry out pilot reform of replacing business tax with value-added tax(hereinafter referred to as"replacing business tax(BT)with value-added tax(VAT)")in some industries.The area and the scope of industries of the pilot reform have been expanded throughout four years.By May 1,2016,the pilot reform had been fully implemented and all industries,including construction industry,were involved in the scope of VAT tax.A comprehensive implementation from BT to VAT could establish a complete chain of VAT deduction,refine social division of labor,extend the industrial chain,improve industrial integration,structural adjustment and industrial upgrading,which will create a fair environment for the development of economy.The admission of VAT in the construction industry,which can effectively avoid double taxation,and relieve the corporate tax burden,which promotes the renewal of equipment,the innovation techndgy and the level of development.However,the construction industry is characterized by many aspeits,such as tight connection with other industries,long construction cycle,wide procurement channels and complex cost structure.Whether the implementation of "replacing business tax with value-added tax" in the construction industry can effectively reduce the tax burden and achieve the overall objectives of tax reform for the corporate tax(This article refers only to the main body of Turnover Tax burden)is currently a hot topic of concern in the construction industry.The paper,based on the principle of value-added tax,establishes a general model,the tax burden equilibrium models and an input-output model.It studies the impact of "replacing BT with VAT" on the construction industry tax burden from the perspective of industry and business,which provides a wider horizon and a more justifiable conclusion.In addition,by analyzing its impact on the construction industry tax burden,the article attempts to sulmit propasals on how to better carry out and respond to the policy of "replacing BT with VAT"from the perspective of business strategy and financial management,providing suggestions for construction enterprises to change their pattern of development and promote industrial upgrading.This paper is divided into five parts:the first part is the introduction,including research background and significance,research ideas and methods and a review of achievements both at home and abroad;the second part reviews the development status and management features of China's construction industry,and expounds the basic situation of turnover-tax levied before and after the implementation of "replacing business tax with value-added tax(VAT)";the third part embarks from the industry perspective,constructs the general model,tax equilibrium model and input-output model,with reference to the latest statistics,the full implementation of the "calculation of replacing business tax with value-added tax(VAT)tax impact on the construction industry.According to the study,the construction industry is affected by tax changes,tax,industry growth,factors and the proportion of intermediate input and other factors;the implementation of "replacing business tax with value-added tax(VAT)" makes the tax burden in construction industry decreased significantly.The fourth part,taking the China construction Ltd.Co.as an example,studies the implementation of the "effect of replacing business tax with value-added tax(VAT)" on the enterprise tax burden in accordance with the data based on the financial reports of recent three years.It shows that after implementing "replacing business tax with value-added tax(VAT),the change of the tax burden between the enterprise and construction industry not changed,namely,the tax burden of this enterprise was significantly decreased.Meanwhile,the main factors affecting the construction enterprise tax changes are also studied,including the method of measuring value-added tax,tax rate design,cost structure,value-added rate,credit vouchers made;the fifth part mainly talks about the problems and corresponding countermeasures and suggestions concerning business strategy and financial management while implementing "replacing business tax with value-added tax(VAT)in the construction industry based on the previous research of the construction industry.