Study On The Impact Of Replacing Business Tax With Vat On The Tax Burden Of A Real Estate Enterprise

The reform of replacing business tax with value-added tax has been piloted for many years in China.Since January 1,2012,the transportation industry in Shanghai and some modern service industries have started the pilot of this reform.By May 2016,the real estate industry as the last one have been officially included in the scope of the reform,which indicates that China's business tax has officially withdrawn from the historical arena.The purpose of implementing the reform is to improve the chain of value-added tax,reduce the tax burden of enterprises,form a virtuous circle of tax burden,and promote the development of China's national economy.However,in the short-term stage,some enterprises may face a situation in which the tax burden does not fall but rise.The main reason is that there may be some problems in the process of tax deduction in the process of replacing business tax with value-added tax.As an important part of China's national economic development,the real estate industry not only affects the individual's interests,but also reflects the level of national economic development.It also has a great impact on its upstream and downstream industries with its high degree of linkage.Studying the impact of the reform on the real estate industry is significant.Based on the inductive literature,this study selects A enterprises for case study.As a top 20 real estate company in China,A company has a large proportion of sales in the real estate market,and its business model has certain representativeness.The research of the object is more representative of the general situation of the impact of the real estate enterprises in China in the process of reforming.Based on the financial data of A company in 2015,2016 and 2017,this paper measures the change of tax burden of A company before and after the reform of replacing business tax with value-added tax through the tax change mechanism of the reform.Including business tax and value-added tax,it also includes the urban construction tax,education surcharge,land value-added tax and the income tax ultimately affected by these factors.Based on the above calculation results,this study analyzes the reasons for the change of tax burden in the process of reform,including the impact of the value-added tax and the impact of increased tax burden management.In addition,for A real estate enterprises Better respond to the reform,proposed related strategies,including tax planning and the establishment of internal systems.In summary,the study concludes that as the input tax rate increases from 6% to 17%,in theory,the total tax burden of A enterprises after the reform is reduced,and when the input tax rate is 5.66%,5.58% and 5.72%,the tax burden of Company A in 2015,2016 and 2017 was consistent before the “VAT reform”.However,due to the fact that the cost of real estate enterprises often fails to obtain deductible VAT invoices and the difference in input tax rates corresponding to various costs and expenses,the tax burden of enterprises may not fall in the actual operation,and A enterprises can pass Tax planning,strengthening invoice management and other means to enable enterprises to better transition to the VAT tax system,thereby achieving the purpose of reducing corporate tax burden.