(A) is expected to improve corporate cash flow
The main purpose of changing business tax to value-added tax is to reduce taxes. The reduction of tax burden will reduce the cash flow expenditure of tax payment under the same operating state, thus improving the cash flow state. Because the cash flow of construction enterprises often changes between positive and negative, a certain degree of tax reduction will bring about a significant improvement in cash flow.
(2) It is conducive to improving the profit rate of enterprises.
When collecting business tax on construction enterprises, the depreciation of purchased raw materials, original machinery and equipment and newly purchased machinery and equipment are included in the tax and included in the cost, which directly affects the gross profit of enterprises. After the business tax is changed to value-added tax, the depreciation of fixed assets such as raw materials and newly purchased machinery and equipment will be reflected in the income statement as tax-free prices, which will reduce the operating costs of construction enterprises and indirectly improve their operating profits.
(3) It is conducive to improving the enthusiasm of enterprises for technology introduction, equipment renovation and renewal.
As a capital-intensive industry, the construction industry has a high unit value and overall value of fixed assets. When paying business tax, the newly added fixed assets such as steel, cement and prefabricated components are basically purchased from ordinary taxpayers, and the paid value-added tax cannot be deducted, which greatly reduces the motivation for technological transformation and equipment renewal of enterprises. According to the Provisional Regulations on Value-added Tax implemented in 2009, from June 5438+ 10/day, 2009, all general VAT taxpayers can deduct the value-added tax of newly purchased equipment and fixed assets (except automobiles, motorcycles and yachts), and the unpaid part will be carried forward to the next period for further deduction. This is not only conducive to the investment in fixed assets, technological transformation and equipment renewal of construction enterprises, but also can reduce energy consumption, reduce environmental pollution and improve the international competitiveness of China's construction industry.
(d) It is expected that this will reduce the corporate tax burden.
General taxpayers of value-added tax implement three tax rates: basic tax rate 17%, low tax rate 13% and zero tax rate. The basic tax rate 17% is applicable to most goods or provide processing, repair and replacement services, the low tax rate 13% is applicable to special goods, and the zero tax rate is applicable to exports; The collection rate of small-scale taxpayers of VAT is 3%.
At present, the business tax rate of construction enterprises is 3%. From the tax rate alone, we can't see the impact of changing business tax to value-added tax on construction enterprises. Because VAT can be deducted from input tax (VAT payable = output tax deducted from input tax), the tax rate (tax rate = actually paid tax ÷ tax basis) should be calculated. For small-scale VAT taxpayers, the tax rate is the collection rate, while for general VAT taxpayers, the tax rate is not necessarily 17% or 13%, but lower than this ratio. For example, when the tax rate is 1 1%, we can measure the impact of the construction industry on the actual tax burden of construction enterprises.
Suppose a construction company, enterprise A, contracts a civil construction project, and the total revenue of the project is100000. The gross profit margin of the project is 10%, and the general contract of the project is 9 million, including: labor cost 15%, material cost 65%, construction machinery use fee 8%, measures cost 3% and overhead cost 9%. From the cost of parts, machinery and equipment, fuel, repair costs, installation costs and so on. Among the material expenses and machinery expenses, tools and temporary facilities in the measure expenses, office expenses, low-value consumables and utilities in the indirect expenses can obtain special VAT invoices, so they can be deducted as input tax. The deductible expenses are: 5.85 million yuan for materials, 600,000 yuan for construction machinery and 6.5438+million yuan for measures.
Before changing business tax into value-added tax: business tax payable = 1000×3%=30 (ten thousand).
After the business tax is changed to VAT: VAT output tax payable =1000×11%=110 (ten thousand).
Deductible input tax = (585 601010) ÷1.17% = 966,000.
Value-added tax actually paid =110-96.6 =13.4 (ten thousand)
The actual tax rate of this enterprise =13.4÷1000 =1.34%.
The conclusion is that if calculated by 1 1%, the tax burden of construction enterprises will be reduced, which is 3 percentage points lower than the existing business tax burden rate.
(5) It is expected to avoid double taxation.
For the general contractor, the change from business tax to value-added tax is undoubtedly a boon. Although it is clearly pointed out in the current business tax law that the general contractor only pays business tax on the balance after deducting subcontracting, it is impossible to do so in practice, and taxes are often repeated. Here is a simple example:
Suppose that Company A contracted the workshop construction task of Company A, with a total contract amount of 6.5438+million yuan, and contracted 3 million yuan of foundation treatment to Company B. Company B issued an invoice for foundation treatment to Company A, and paid business tax of 90,000 yuan (300× 3% = 90,000 yuan); Company A collects 654.38+00000000 yuan from enterprise A, issues an invoice of 654.38+0000000 yuan to enterprise A, and pays 265.438+0000000 yuan (700× 3% = 265.438+000000 yuan) of business tax according to the tax law. However, in the actual project, the tax bureau adopts "controlling tax by ticket, networking comparison, tax source monitoring and comprehensive management". The final result is that Company A should pay 300,000 business tax (1, 000× 3% = 300,000), resulting in repeated tax payment of 90,000 (30-21= 90,000). If Company A and Company B issue 7 million and 3 million invoices to Company A respectively, Company A will not accept them because the name and amount of the drawer are inconsistent with those signed in the contract. However, if the business tax is changed to VAT, although Company A has issued an invoice of RMB 6,543,800,000, it only needs to bear the output tax of RMB 7,000,000, and another RMB 3,000,000 can be deducted as the input tax, thus avoiding double taxation.
(six) the time, place and way of tax payment of construction enterprises have changed.
Construction enterprises are mainly engaged in building construction, highway bridges, water conservancy and hydropower, electric power, mines and other civil engineering construction. Compared with other types of enterprises, its production has the characteristics of large liquidity, long production cycle and low degree of mechanization, which leads to a wide range of production and operation activities, high labor costs and mostly order-based production.
1, tax payment time
Business tax for construction industry is:
(1) The tax payment time for prepayment settlement is the day when the budget is received.
(2) The tax payment time for one-time settlement is the date of settlement of the contract price.
(3) The tax payment time for mid-month advance payment, month-end settlement and completion settlement is the day when the completed project price is settled with the contracting unit at the end of the month.
(4) According to the progress of the project image, the tax payment time for phased settlement is the day when the project price is settled with the contractor at the end of each month.
After the VAT is changed, the tax payment time is the day when the payment is received or the payment voucher is obtained; The date of invoice is the date of invoice first.
2. Tax payment place
Construction business tax is the place where taxable services occur (that is, the location of the project). After the value-added tax is levied, the tax payment place shall be paid by the head office to the place where the institution is located, and the tax payment place is completely changed.
3. Tax payment method
Construction business tax is levied according to the turnover, which is generally taxed in full, and in special cases, it is taxed according to the difference. Such as (1) the balance after deducting the price of equipment provided by the owner from the turnover of construction (excluding decoration services) and installation works (2) the balance after deducting the price of raw materials, main materials and equipment provided by customers from the turnover of decoration services. After the VAT is changed, there are three ways to pay taxes: (1) regular collection (2) approved collection (3) based on VAT (output tax deducted from input tax).