What is the impact of the VAT reform on the accounting aspect of the construction industry?

Increase in tax costs. The tax rate of construction and security industry is 3%, and the value-added tax rate is 11% after the VAT reform, although the input can be deducted, but the labor cost that accounts for half of the construction and installation cost has not yet been clearly deducted, and only materials can be deducted. However, the upstream building materials market of the construction and safety industry is not standardized, and there are few special invoices that can be obtained, and the pass-through nature of the tax burden determines that the ticket is necessarily higher than the non-ticket, and if there are more bricks, tiles, gray sand and gravel individual businesses, it is more difficult to obtain invoices.

So in reality, the cost of taxation will increase dramatically; Increased management costs. The construction industry should be the most chaotic industry in financial management at present, and there is no one. It is difficult to see a company that can make the accounts clear, let alone pay taxes in full and on time, after all, after many years of approved collection, so that enterprise managers do not have the motivation to increase investment in financial management.

After the VAT reform, due to the strict requirements for bill management, enterprises are bound to increase the cost of management. <>

Incoming invoices. In the past, the accounting of the construction industry never cared about this, and now the procurement department has to be urged to issue special invoices, otherwise it cannot be deducted; Payment time. In the past, the accountant didn't worry about this, when Party A settled the payment and when it was recorded, after all, it is not a common situation to calculate taxable income according to the progress of the project.

After the VAT reform, it is different, and there is a time limit for input deduction; Accounting for manpower expenditures. It wasn't so troublesome before, but now we have to consider that the construction industry is a labor-intensive industry, and workers' wages account for the majority and cannot be deducted; Various potential problems in the flow of the national and local tax handover phase. After all, I used to only deal with land taxes; The filling of various reports is not explained.

Increase the tax burden of enterprises, after the estimated budget is readjusted according to the VAT reform, the level of the VAT rate of the construction industry will not affect the tax burden of the enterprise, because the owner's payment is paid to the contractor according to the naked price plus taxes, the naked price is the income of the contractor, and the tax paid by the owner is the output tax of the contractor and does not enter the cost, no matter how much the output tax is charged, the settlement with the owner is unchanged.

For the financial statements of enterprises, before the VAT reform, the main business income includes business tax, which belongs to the tax-included income, and after the VAT reform, because the VAT is an off-price tax.

Therefore, the main business income does not include value-added tax, which belongs to the amount of tax-excluded income. For example, for a construction project with a revenue of RMB11.1 billion under the pre-differential business tax system, the operating income that should be recognized after the VAT change is RMB10 billion [111 (1 11%)] Correspondingly, the input VAT related to costs will no longer be included in the operating costs, such as the VAT amount generated by raw materials, fuel and lease fees.

This has led to an increase in the asset-liability ratio. Since VAT is an off-price tax, the recorded cost of fixed assets, raw materials, auxiliary materials and other assets purchased by construction enterprises is the amount of input tax deducted, and the total assets will be reduced to a certain extent compared with before the change to operation, which will cause the asset-liability ratio to rise.

With the rapid development of the economy and the continuous upgrading of the industrial structure, the service industry accounts for an increasing proportion of the national economy, especially in the economically developed areas, the revenue of value-added tax in 2008-2011 far exceeds the income of business tax. On March 18, 2016, Xiaoqing, the executive meeting, reviewed and approved the pilot plan for replacing business tax with value-added tax. It is clarified that from May 1, 2016, the pilot project of replacing business tax with value-added tax will be fully launched, and the construction industry, real estate industry, financial industry, and life service industry will be included in the pilot scope.

Strengthen the management of input tax deduction: The amount of VAT directly depends on how many special VAT invoices can be provided by construction enterprises for input deduction. Therefore, the higher the input deduction that a company can provide, the lower the amount of VAT paid.

Adjust the industrial structure and change the development model: At present, many construction enterprises are still labor-intensive enterprises, and there is fierce competition in the market. However, we know that the continuous development of the economy and the acceleration of the aging of society have led to rising labor costs.

As a result, companies are facing increasing pressure on wages and costs, and profit margins are getting smaller and smaller. Therefore, construction enterprises should vigorously encourage technological innovation, improve the level, realize industrial transformation, and continuously optimize the structure.

Optimize internal management and improve the level of accounting: first of all, we should increase the training and learning of financial personnel, strengthen the training of professional knowledge such as value-added tax law and construction contracts, and under the sound and complete accounting system, financial accounting personnel should have advanced accounting capabilities and skills, and be able to accurately calculate the tax amount of output and input, and be equipped with an effective invoice system.

Secondly, due to the high requirements of the tax collection and management department for the tax control and management of the enterprise, the value-added tax is to achieve the deduction of the tax by virtue of the special invoice, the enterprise should promote the information construction of the construction site, and strive to overcome a series of difficulties such as inconvenient transportation and communication caused by the geographical dispersion of the project, and strive to enhance the efficiency and level of accounting, actively establish and improve the processing system of accounting data, and strengthen the training of relevant business personnel, especially in the issuance and certification of special invoices related to value-added tax. The tax control system with a series of links such as deduction and its anti-counterfeiting function is widely used. Prevent the acquisition of incomplete VAT deduction certificates.

Strengthen tax planning and reduce the tax burden of enterprises: On the basis of obtaining real, reliable and complete planning materials, construction enterprises should select the right planning entry point and formulate correct planning steps in order to make an effective planning plan that best meets the requirements of the enterprise.

In this tax reform, the construction business tax is changed to VAT, and the tax rate is set at 11% for general taxpayers and 3% for small-scale taxpayers. According to Article 4 of the Provisional Regulations on Value-Added Tax, the tax payable by general taxpayers for the sale of goods or tax-bearing services shall be the balance of the current output tax after deducting the current input tax.

The formula for calculating the tax payable is as follows: tax payable, current output tax, current input tax. If the output tax amount of the current period is less than the input tax of the current period and is insufficient for deduction, the insufficient part can be carried forward to the next period for further deduction.

Article 14 stipulates that if a general taxpayer sells goods or taxable services, and adopts the combined pricing method of sales amount and output tax, the sales amount shall be calculated according to the following formula: sales amount including tax (1 + tax rate).

Then, construction enterprises take 100 yuan operating income as an example:

Sales of construction enterprises = 100 yuan.

The output tax of the construction enterprise = yuan.

Sales of construction services = 100 yuan.

Construction service industry output tax = yuan.

Sales of tangible movable property leasing services = 100 yuan.

Output tax on tangible movable property leasing services = RMB.

Only when the input tax deduction for the construction industry reaches the operating income, the input tax deduction for the service industry reaches the operating income, and the input tax deduction for leasing services reaches the operating income, the tax burden of each professional can be on par with the tax burden under the business tax system, which is fully in line with the original intention of this reform. If the deduction is greater than the above factor, the tax burden will be reduced, and if the deduction is less than the above factor, the tax burden will increase.