Research On The Impact Of VAT Reform To Operating Profit On Construction Industry

China’s value-added tax(VAT)has undergone continuous reform and improvement since it was implemented nationwide in 1994.Among them,there are typical VAT transformation reform,VAT "expansion" reform and degeneracy tax rate reform.In particular,the comprehensive reform of replacing the business tax with a value-added tax in 2016 has included the construction industry and other industries in the scope of VAT taxation.On the one hand,it has standardized and improved China’s VAT tax system,providing an important guarantee for the construction of a modern economic system.On the other hand,it also has a profound impact on the development of various industries.This paper takes the construction enterprises that are included in the scope of VAT taxation after "replacing the business tax with a value-added tax" as the research object,and makes an in-depth analysis of the impact of the VAT reform on their profits by combining theoretical analysis and empirical analysis.The results show that the VAT reform has a significant impact on the profits of construction enterprises,and its transmission path is mainly through the change of VAT elements to affect the income and cost of construction enterprises,and then the transmission to profits.This paper consists of four parts.Firstly,this paper defines the VAT reform and construction enterprises.Based on the contents and characteristics of the reform,this paper divides the VAT reform into five types:expanding the scope of taxation,expanding the scope of deduction,simplifying the tax rate,changing the tax calculation method and raising the level of legislation.At the same time,combining with the characteristics of construction industry,further analysis the impact of VAT reform of building enterprise profit mechanism,found the VAT reform mainly through VAT elements,such as sales tax and tax rates,input tax deductible,and the change of the tax,cause building enterprise income and cost of change,will affect profits.Secondly,this paper takes "replacing the business tax with a value-added tax"as a key node,and divides the VAT reform process into three stages:the pre-reform stage,the comprehensive reform stage and the post-reform stage.At the same time,the paper expounds that the core content of the VAT reform of the construction industry is to replace the business tax with the VAT and to adjust the VAT rate,and further clarifies the VAT reform policy affecting the construction enterprises.Then,by establishing the panel data model,this paper makes an empirical analysis of the research topic.In order to make the research more focused,the empirical part focuses on the analysis of the impact of VAT rate change on the profits of construction enterprises.It is divided into two parts.The first part analyzes the impact of the change of actual tax burden on the profits of construction enterprises in the period of "replacing the business tax with a value-added tax",and the second part analyzes the impact of tax rate adjustment on the profits of construction enterprises in the period of "replacing the business tax with a value-added tax".The results show that the tax rate adjustment has a significant impact on the profits of construction enterprises in both the period of "replacing business tax with VAT" and the period after"replacing business tax with VAT",as well as a significant increase in the operating income and operating cost of construction enterprises,which further verifies the conclusion of the theoretical analysis in this paper.Finally,based on the perspective of value added tax system specification,at the same time combining theoretical and empirical analysis of the conclusion of this article,summarizes the VAT reform goals and should follow the principle of and the optimization of value added tax system,perfect the VAT deduction chain,expand the scope of leave to change tax rebate and the suitable conditions,improve the system of electronic commerce value added tax and accelerate the VAT tax legislation work five aspects put forward the corresponding policy recommendations.There are two possible innovations in this paper.First,innovation of research perspective.This paper focuses on the changes of VAT elements caused by the VAT reform,especially the comprehensive reform of "replacing the business tax with a value-added tax" in 2016 and the two tax rate adjustments in the era of "replacing the business tax with a value-added tax",and dynamically analyzes their impact on the profits of construction enterprises.At the same time,using the method of combining theoretical analysis and empirical analysis,draw the conclusion:after the full camp "change" or "camp to add" value-added tax reform,all has significant effect on the construction enterprise profit,the conduction path is mainly the change of VAT elements to influence the revenue and cost of construction enterprises,and the conduction to profits.Second,research method innovation.By establishing a panel data model,this paper analyzes the impact of the actual tax burden change in the period of "replacing business tax with VAT" and the tax rate adjustment in the period after "replacing business tax with VAT" on the profits of construction enterprises,and analyzes the impact on the operating income and operating cost of construction enterprises through the econometric model,so as to confirm the conclusion of the theoretical analysis.