The Analysis Of Added-value Tax For Shandong Province Construction Industry

In the 1970 s,the tax system of our country was reformed,that is,the financial management system,which divides the sources of income from the central government and the local government according to the tax types.On the positive side,it has a positive effect on the development of the national economy,such as clearly dividing the tax structure between the central and local levels,increasing the strength of the central Treasury,and greatly increasing the National revenue.As the important policy of China,replacing the business tax with Value-added Tax(VAT)were launched in Shanghai in January of 2012.Piloting in modern service sector and transport industry,the conversion had been popularized gradually to the whole country.In 2014,pilot sectors were expanded to railway transport,postal service and telecommunications.Following Pilot Proposals issued on May,2016,more sectors have been enrolled in the reform,including finance & insurance,construction and realty industry,which marks its overall implement in China.Therefore,construction industry,with newly enrollment and booming development,becomes an appropriate study object for comparison and analysis of tax burden's changes and influencing factors during conversion to VAT.Furthermore,Shandong province,a significant player in the country,provides an epitome of the industry to study replacement of business tax and VAT.The passage begins with the elucidation and summary of relevant study at home and abroad in the years,which leads to the conversion's influences on the tax and help identify advantages and feasibility of VAT implement in the construction industry.Next is the development and tax structure research of Shandong province,based on analysis of statistical yearbook in this decade.And then from the perspective of civil and erection costs,make adjustments to calculating factors of price and tax separation,set up estimation models and predict taxing after replacement of VAT.On the other side,select A Construction Co.as a representative of Shandong,collect data and set up models to calculate tax changes of individual program category.And it turns out an increase of overall tax burden of construction industry in Shandong.In the end,take both calculating results and current position of Shandong's construction into consideration to figure out reasons of tax burden changes.It comes to be: missing step in the input tax deduction,timing's inconsistency of revenue department and tax payer,rather higher VAT rate within some product sectors,complex operation during tax collection.Since they are involved in country policies,governor and enterprises,the passage is going to end with practical refinements and advice from macro and micro view of taxing of Shandong construction industry.