Analysis Of The Impact Of "Replacing Business Tax With VAT" On The Construction Industry

Since the introduction of the tax-sharing system in 1994,China has gradually formed a taxation system in which the business tax and the value-added tax are paralleled.This taxation system has caused the VAT deduction chain to be interrupted,and resulted in serious double taxation problems,It is extremely unfavorable for the economic development of our society and The professional division of labor.Therefore,China began to reform the business tax.Until May 1,2016,the “replacing business tax with VAT” policy was fully launched,and the construction industry began to implement the “ replacing business tax with VAT ”.The “replacing business tax with VAT” has changed the tax system and tax rate of the construction industry,changed the pricing and taxation model of the project.In theory,the implementation of VAT can improve and standardize the tax system,avoid double taxation,reduce the enterprise’s tax burden,stimulate market vitality and promote the healthy development of the construction industry.However,from the actual operation situation in the past time,due to the characteristics of the construction industry supply chain and many integration factors,there are many problems in the practice management process that hinder the VAT tax system from playing a tax reduction role.At the same time,most of the existing research results are concentrated on qualitative analysis,That is to say,the tax burden level before and after the “ replacing business tax with VAT ” is explored from the theory;a few studies use the method of quantitative analysis,but due to the short period of VAT implementation,there is no the latest sample data,and the analysis lacks empirical analysis and timeliness,It is difficult to provide effective support for solving the problems faced at this stage.Therefore,the empirical research on the implementation of the tax burden change after the implementation of the VAT general taxation method in the construction industry has important value and practical significance.Based on the analysis of the status quo of the “replacing business tax with VAT”,firstly,from the perspective of macro-measurement and micro-observation,the paper systematically analyzes the tax burden changes under the business tax and VAT models.For macro-calculation,it mainly uses the input-output method to measure and analyze the tax burden.This paper investigates and collects the data of the latest input-output table,and uses the input-output method to simulate the tax burden under the two modes.For the micro-observation calculation,it mainly uses the cost component of the project to calculate and analyze the tax burden.This paper collects the latest project cost data of 11 projects through field research,and uses the inversion calculation model and the actual comparison model respectively.The tax burden in the two modes was measured and analyzed.Secondly,through the calculation results of tax burden level,the index system of tax influencing factors is constructed,and the grey correlation analysis technology is used to determine the key factors and analyze the key factors.Finally,according to the analysis of tax burden measurement and key influencing factors,corresponding measures are proposed from the national level and the enterprise level.The research content of this paper has certain innovation and timeliness.It not only provides practical guidance for the construction industry to implement VAT,but also provides reference for the transformation and upgrading of the construction industry.