Research On The Impact Of Value-Added Tax Reform On The Real Estate Industry

On May 1,2016,China’s "VAT reform" was fully implemented,and the scope of reform was expanded to include the construction,real estate,financial and domestic service industries,since then,the VAT has taken up a major role in China’s tax revenue and has gradually entered a stage of continuous reform and deepening of the VAT.In 2017,in order to solve the problem of inefficiency caused by too many tax brackets,the VAT rate was simplified and abolished at13%;the former VAT rate of 17% was reduced to 16% and the former VAT rate of 11% was reduced to 10% from May 1,2018;in 2019,in order to further reduce taxes and fees,the former VAT rate of 16% was reduced to 13% and the former VAT rate of 10% was reduced to 9%.As a pillar industry of China’s national economy,the real estate industry has made important contributions to the rapid development of China’s economy and has attracted much attention in the past decade.The deepening of VAT reform theoretically helps to reduce the tax burden,which in turn reduces the operating costs of enterprises and improves their business conditions,but the specific impact varies due to the differences in the production and operation characteristics of enterprises,and different scholars have different views on the impact of VAT reform on the real estate industry.Against this background,this thesis examines the impact of VAT reform on listed real estate enterprises through the analysis of the tax burden of real estate enterprises and their business performance,and then introduces the impact on the real estate industry.First,this thesis understands the mechanism of VAT reform’s impact on enterprises’ tax burden and business performance by means of formulas and examples.tax rate.Then,to understand the current situation of the real estate industry in terms of tax burden and business situation,it is found that the tax burden of China’s real estate industry shows a decreasing trend during the VAT reform period,and the operating profit also shows an increasing trend while the construction and security costs and land acquisition costs increase year by year.However,in order to further understand the impact of VAT reform on the tax burden and operating performance of the real estate industry,we collected quarterly financial data of 102 listed real estate enterprises and established a fixed-effect model to analyze the impact of various policies on the tax burden and operating performance of real estate enterprises during the deepening stage of VAT reform.We find that the tax burden of real estate enterprises is significantly reduced by the "camp reform" and the tax rate reduction in 2018,and the tax rate reduction in2019 has a negative impact on the operation of enterprises.Finally,combining the results of theoretical and empirical analyses,the VAT reform does significantly reduce the tax burden and improve the business performance of the real estate industry,but there are still problems such as the overall tax burden of the real estate industry is heavy and the business situation is challenging after the reform.This thesis analyzes the causes of the problems from the aspects of tax structure,deductible input tax,tax burden shifting,taxrelated risks and accounting.In order to promote the healthy and long-term development of the real estate industry,this thesis gives the following suggestions: 1)at the national level:(1)promulgate a complete VAT law;(2)establish a scientific VAT collection and management system;(3)simplify the procedure of obtaining VAT special invoices and expand the scope of deduction;2)at the level of economic entities:(1)make reasonable use of tax planning;(2)strengthen personnel training to cope with policy adjustments;(3)strengthen contract management and clarify tax-related contents.