Research On Optimizing Tax Collection And Management Of Construction Industry After Replacing Business Tax With Value-added Tax

Business tax and value-added tax used to be two major taxes in China.From 2012 to 2016,business tax was replaced with value-added tax,which gradually completed the transformation of business tax collection in the central plains of the national economy.It has been nearly three years since the construction industry was one of the last industries to be included in the pilot program in 2016.China's decision to replace the business tax with a value-added tax is intended to promote the healthy development of various industries and facilitate tax authorities to standardize tax administration.However,in fact,after replacing the business tax with a value-added tax,the tax burden of the construction industry generally increased instead of decreased,which led to the non-standard operation behavior of construction enterprises and the distortion of taxrelated behavior,which greatly increased the difficulty of tax collection and management of the tax department.The author has personally participated in the work of replacing business tax with value-added tax,which has been followed up for a long time.This paper first sorted out the tax policies of the construction industry after replacing the business tax with a value-added tax,sorted out the policy orientation of the country to the construction industry,understood the operation rules of the construction industry through research,and analyzed the tax-related characteristics of the construction industry.Then,using the method of case analysis and based on the data of a single construction project of G company,the author calculated the VAT tax burden and comprehensive tax burden of the construction enterprise under the three modes of obtaining input invoices,studied and analyzed the connection between the VAT policy and the industry and the difficulties and blockages in the process of the construction industry adapting to the tax policy.After replacing the business tax with a value-added tax,the tax burden and profit level of the construction industry vary greatly under different business models.However,it is common for the tax burden of value-added tax to rise slightly,the actual comprehensive tax burden to rise significantly,and the profit space of enterprises to be compressed.According to examples,this paper analyzes the main problems existing in the process of tax collection and management of construction enterprises in the real situation,such as the tax burden of construction industry falling instead of rising,the distortion of operation behavior and tax-related behavior of construction enterprises,and the great difficulty in tax collection and management of construction industry by thetax department.According to analysis the problem,the author from the perspective of tax management department puts forward the specific countermeasures,which improve the VAT deduction construction industry chain,to strengthen the construction industry to control tax,strengthen the construction of the whole tax collection and administration,strengthen the tax collection,the application of big data in the construction industry to further strengthen enterprise financial accounting basis.