How to do a good job in the accounting of construction enterprises in the VAT reform?

It is not difficult to see from the relevant policies of "replacing business tax with value-added tax" that "replacing business tax with value-added tax" can be said to be caring for small and micro enterprises, and choosing the simple tax calculation method can reduce a lot of burden compared with the original 3% business tax.

Small and micro enterprises can be temporarily ashore, but large and medium-sized enterprises have to face the historical legacy of the construction industry. In the past, if construction enterprises have certain industry resources, they can subcontract the project to make a profit, and after the implementation of the VAT reform, the enterprise will be forced to ask for special VAT invoices for inputs, which will make this model of subcontracting at all levels unsustainable.

It can be seen that small and micro enterprises enjoy the policy dividend period, and large and medium-sized enterprises are still struggling to deduct inputs. In the construction industry, it is often difficult to obtain VAT invoices for materials such as sand and gravel, earthwork and stonework, which will lead to a reduction in input tax.

In addition, construction enterprises are labor-intensive industries, and external labor costs account for about 20% to 30% of construction costs, and these costs cannot be deducted according to regulations.

Although small and micro enterprises do not have to face the problems caused by the size of large and medium-sized enterprises, due to limited resources, they are vulnerable to changes in the investment environment.

The short-term tax burden is likely to increase.

There is no doubt that the VAT reform will bring fundamental changes to the enterprise, and reducing the tax burden is the fundamental goal, but according to the preliminary calculation of a construction enterprise, the input tax deducted after the VAT reform must be reached in order to keep the tax burden flat, but considering the actual management level of the enterprise, the input tax can only reach 60% at most, and the tax burden will increase in the short term.

**Suppliers and subcontractors are carefully selected.

In the face of many phenomena such as "A supply of materials" and layers of subcontracting, experts suggest that construction enterprises should pay attention to the selection of qualified contractors and subcontractors in the future construction of the project, and standardize the operation process, so as to increase the deduction as much as possible and reduce the actual tax burden.

The tax reduction chain promotes the development of the construction industry.

Looking at the tax rate alone, the construction industry has adjusted the largest increase: 3% business tax and 11% value-added tax. Although VAT is deductible, it is still very challenging for the current state of the industry.

Compared with fighting alone, the formation of a tax reduction chain in the industry will be conducive to achieving the effect of tax reduction. After the corporate tax cut, the service industry will expand faster, which will boost the demand for real estate, which in turn will drive the demand for the construction industry, which in turn will drive the operation of the entire economic chain.

The "VAT Reform" should strive to break through the constraints brought by the inherent model, and strive to get close to the original design intention of the "VAT Reform", so as to promote a more scientific tax calculation method and achieve the ultimate goal of reducing the burden on enterprises.

Improve the contract agreement and clarify the payment procedure. In a construction contract dispute involving the author, the general contractor and the subcontractor agreed that the relevant taxes and fees would be withheld and paid by the general contractor, and then deducted from the project payment when the project was approved and settled. When the project was approved and settled, the general contractor required the subcontractor to pay a total of 600,000 yuan in taxes withheld and paid by the general contractor, and the subcontractor pointed out that as a steel structure production, sales and installation company, it had been issuing special VAT invoices in accordance with the provisions of value-added tax, and had issued VAT invoices of the same amount.

However, the general contractor could not use these special invoices for deduction, and the two parties disputed and then sued the court. Although the parties finally accepted the mediation of the court, both parties also spent a lot of energy and time in order to handle the deduction of relevant taxes.

The case also reminds construction enterprises that in the contract, they should pay attention to the clear tax vouchers. After replacing business tax with value-added tax, the construction enterprise shall clearly stipulate in the subcontract, material procurement contract and other contracts that the other party shall bear the equal, legal and valid VAT invoices. At the same time, it is also necessary to agree that the other party will provide the corresponding payment application, purchase and sale vouchers, and VAT invoices before payment.

Strengthen the management of contractors and branches. Internal contracting and branch operation are conducive to the business expansion of enterprises, but they also bring many management problems to enterprises. After the VAT reform, many contractors and branches are still unclear, and blindly think that as long as they can provide the corresponding project invoices, this will inevitably lead to disputes in the final settlement.

The construction enterprise shall conduct training for the contractor and the branch in a timely manner, and require them to pay attention to the collection and preservation of the corresponding special VAT invoices.

Select a partner that qualifies as a VAT payer. In this tax reform, construction enterprises should pay more attention to choosing partners with VAT taxpayer qualifications, and should examine their corresponding deduction tax rates, so as not to be unable to deduct enterprise VAT. Strengthen tax law training and make corresponding adjustments.

Although the system of replacing business tax with value-added tax has been determined, the specific implementation plan has not yet been promulgated by various localities. A considerable part of the personnel of the enterprise do not understand the tax reform plan and the difference between business tax and value-added tax and other tax law regulations, and the construction enterprise should actively organize financial, management, cost and other personnel for training, and at the same time maintain communication with the tax and construction authorities to understand the latest tax regulations as soon as possible and adjust the first plan.