Analysis Of Tax Burden Effect Of HY Construction Enterprise After The Replacing Business Tax To VAT

Since May 1,2016,the policy of “the replacing business tax to VAT”(value-added tax)has been fully implemented in China,and the construction industry,as one of the pillar industries of the national economy,has since been included in the pilot project of “the replacing business tax to VAT”.The greatest feature of “the replacing business tax to VAT” is to reduce repeated taxation,which is conducive to reducing the tax burden of enterprises,creating a fair and reasonable tax environment,and promoting the healthy and coordinated development of the national economy.Construction industry which covers a wide range of industries and has a large number of employees is a basic industry in China.A large number of employment opportunities have been created,and social and economic development has been promoted because of construction industry.It is closely related to people’s livelihood,and plays an important role in the process of social and economic development.Although the reform of “the replacing business tax to VAT” has been implemented for 2 years in the construction industry,value-added tax was still not understood thoroughly by some construction enterprises,lack the effective evaluation of the impact of “the replacing business tax to VAT” on the business development of enterprises,there are a realistic problem that how to seize the opportunity in the reform for each construction enterprise.Besides,this is a great barrier that the tax management mode still remains within the framework of the original business taxStarting with the concepts and background of “the replacing business tax to VAT”of construction enterprises,a specific construction enterprise was taken in this paper,HY construction enterprise as a typical example,from the current situation of enterprises and the impact of “the replacing business tax to VAT” on the tax burden of enterprises,and then the reasons were analysed for the change of tax burden of enterprises after “the replacing business tax to VAT” and the Countermeasures for the change of tax burden of enterprises after “the replacing business tax to VAT” of business operation.Firstly,the development status of HY enterprises and the changes of tax burden brought by the “the replacing business tax to VAT” were analysed withinthe paper,and reducing tax burden of enterprises after “the replacing business tax to VAT” were found.Then,the difficulties faced by the construction industry in the process of “the replacing business tax to VAT” and the causes of the problems were deeply analyzed.It was found that the tax burden of enterprises increased due to the long construction cycle,long time span,large capital occupation,wide scope,complex upstream and downstream industrial chain and difficulties in obtaining special invoices for VAT deduction.Finally,from the perspective of strict treatment of VAT input deduction,reasonable selection of supplier enterprises and rational use of tax policies,relevant suggestions on how construction enterprises can better adapt to the relevant policies of “the replacing business tax to VAT” were put forward in this paper,so that construction enterprises can better cope with “the replacing business tax to VAT” and do a good job in tax management.