The construction enterprise is an enterprise specializing in the construction, renovation, expansion and demolition of civil engineering, construction engineering, line pipe and equipment installation engineering and decoration engineering. The construction enterprise pays the business tax under the current tax system, and the business tax is changed to the value-added tax (hereinafter referred to as “the reform and increase”). What impact does the enterprise have on the construction enterprise? How should the enterprise respond? The answer that is actively sought.
I. Impact of the reform of the camp on construction enterprises
1. Impact on the tax burden of construction companies
After the construction enterprise's business tax is changed to VAT, the first issue involved is the deduction of the input tax. for example:
Take the construction company as an example. Assume that the project gross profit margin is 10%. In the project settlement cost, the raw materials account for about 55% (the cement costs account for 45% of the construction materials cost, the steel accounts for 40%, and the other materials account for about 15%). Labor costs account for about 30%, machinery usage fee is 5%, other expenses account for no more than 10%, assuming that its annual operating income is 111.0 million yuan and operating costs are 99.9 million yuan (both operating income and cost include VAT).
Before the change of the camp, the business tax should be paid 3.33 million yuan (11100 × 3%).
After the reform of the camp, the labor cost cannot be deducted from the input tax, so the input tax can be deducted to 8.7 million yuan [9990 × (55% + 5%) ÷ (1 + 17%) × 17%] output tax is 11 million Yuan [11100÷(1+11%)×11%] (Note: In November 2011, the State Council approved the “Pilot Program for the Change of Business Tax VAT” (Cai Shui  No. 110), the value-added applicable to the construction industry in the plan. The tax rate was changed to 11%.) In this way, the value-added tax should be paid at 2.3 million yuan (1100-870), and the tax burden of construction companies has decreased.
The above is a theoretical algorithm, but in fact the characteristics of construction companies will bring many challenges to the calculation of value-added tax. For example, there are many sources of construction materials, and the VAT input tax is difficult to deduct. Due to the difficulty of invoice management, The input tax on many materials cannot be deducted normally, which increases the actual tax burden of the construction industry. According to the "Notice of the Ministry of Finance and the State Administration of Taxation on the application of the VAT rate and the simple method of expropriating the value-added tax on some goods" (Cai Shui  No. 9), the general taxpayers can choose the following goods for sale. The method is based on the 3% rate (Note: According to the Notice of the Ministry of Finance and the State Administration of Taxation on the Policy of the VAT Collection Rate of the Ministry of Finance on June 13, 2014 (Cai Shui  No. 57), as of July 1, 2014 Execution rate of 3%, the original rate of 6% is no longer applicable) Calculate the value-added tax: 1 sand, earth and stone used for construction and production of building materials; 2 continuous production of sand, earth, stone or other minerals that you have extracted Brick, tile, lime (without clay solid bricks, tiles); 3 tap water; 4 commercial concrete (only for cement concrete produced from cement). The goods listed above are the main materials of the project and account for a large proportion of the project cost. Assume that the construction company can obtain the formal VAT invoice when purchasing the above materials, the deductible input tax rate is 3%, and the construction industry VAT output tax rate is 11%, and the above materials purchased by the construction enterprise will increase by 8%. Taxation costs, thereby increasing the actual tax burden of the construction industry, and occupying profit margins.
Since the machinery and equipment purchased by the enterprise can offset the VAT input tax, it is beneficial for the enterprise to improve the level of machinery and equipment. The construction company reduces the labor cost of the operators by introducing new machinery and equipment, and provides equipment for enterprises to upgrade their equipment and expand their operation scale. A strong condition, while the improvement of the level of mechanical operations can reduce the occurrence of major construction accidents, promote safe production, and ensure the safety of workers.
2. Impact on cost management and accounting
First, major changes will be made in the budget preparation of the construction unit bidding. The corresponding design budget estimates and construction drawing budgets should also be implemented in accordance with the new standards. The contents of the public bidding documents to be released should also be adjusted accordingly.
Second, this change complicates the bidding of construction companies. For example, in the preparation of the tender, the direct costs related to raw materials and fuels do not include the VAT input tax. In the actual construction, it is difficult to accurately predict how much the cost can obtain the VAT input tax.
Third, due to the implementation of the new quota standard, the enterprise construction budget needs to be revised again, and the internal quota of the enterprise should be re-formulated.
3. Impact on business form
The change of business tax to value-added tax is conducive to curbing the phenomenon of illegal subcontracting and subcontracting. Some enterprises subcontract all projects to others after contracting the project. This is strictly prohibited by the Building Law. In the case of all subcontracting of the project, the construction enterprise as the first contractor (the unit undertaking the project from the contractor) shall Calculate the sales and output tax from all the project settlement income and the out-of-pocket expenses obtained from the contractor, and obtain the VAT special invoice from the second contractor (the unit that undertakes the project from the first contractor) as the input tax amount. In the accounting process, it can be found that there is no outsourced material available for deduction, so it is easy to judge the transaction essence of the entire subcontracting of the project. Article 29 of the Construction Law stipulates that “the general contractor shall be prohibited from subcontracting the project to a unit that does not have the corresponding qualifications”. If the subcontractor is a small-scale taxpayer or contractor, the deductible input tax will be greatly reduced, corporate tax Negative will rise and profits will decrease. Once the tax authorities confirm the illegal subcontracting or illegal subcontracting, the first contractor will be prohibited from deducting the input tax amount. At this time, the tax burden of the first contractor will be greatly increased, the profit will be greatly reduced, and the profit margin is not large. The construction enterprise's operating results have a big impact, which will play a certain role in curbing illegal subcontracting.
Another common form is the docking. At present, many affiliated units do not invoice for materials purchased, and the purchase price of materials is relatively low. If the VAT special invoice is not issued after the tax reform, the affiliated unit will not be able to obtain the deductible income, and the tax burden will increase. If a special VAT invoice is issued, there must be a real transaction, and the material supplier will often take the opportunity to increase the price. Profits will be greatly reduced, which will seriously hit the call.
For the joint venture project, since the business tax has no relationship with the cost, the business tax is calculated based on the total project cost. There is no tax deduction. The joint venture partner often does not have a sound accounting system and has no awareness of invoicing. After the implementation of value-added tax, the value-added tax is inseparable from the project cost and cost. If the joint venture project cannot obtain enough VAT special invoices in the procurement, leasing, subcontracting, etc., the VAT input tax will be small, the deductible tax will be less, the tax paid will be more, and the tax will be taxed. Even beyond the profit rate of the project, the general contractor and the joint partners will be unprofitable, and the tax-related risks will threaten the survival and development of the joint venture project management model.
4. Impact on business management
Construction enterprises' construction projects are scattered throughout the country, the areas of material procurement are also dispersed, and the material management departments are numerous and miscellaneous. Each procurement business must issue VAT invoices according to the existing VAT invoice management mode, and the quantity is huge, and the invoice collection It is difficult and time-consuming to review, organize, and so on. According to the current system, the input tax must be certified within 180 days, and the work is very difficult. The tax problem in reality is not as simple as the theoretical analysis. If you get the invoice from the other party, you should pay attention to whether it is a special invoice, the time on the invoice, whether the invoice is correct or not. These undoubtedly put forward higher requirements for the financial personnel of the construction enterprise and even the staff of the operation department. In addition, the business tax and the value-added tax payment location are different, and the construction company will also have a big change in the taxation location due to its operating characteristics.
The reform of the camp will raise higher requirements for the management of construction enterprises. As a construction enterprise with corporate legal person qualifications, it is necessary to make corresponding adjustments from the establishment and development strategies of the company's organization, sub-branch and major investment and financing projects. . For example, in the bidding work, the enterprise often bids in the name of the group company, and then decomposes it into the group after winning the bid. The member companies with legal person status should sign a subcontract with the group company, and the income earned should be subject to VAT at the location of the member enterprise. The VAT invoice will be provided to the group company; the total income of the group company from the construction unit, after deducting the VAT input tax paid by the member company, shall be subject to VAT at the location of the enterprise, and neither the construction unit nor the group company can withhold the tax. Pay taxes and fees. As mentioned above, the camp reform is easier to achieve supervision for illegal subcontracting, subcontracting, affiliated and joint venture projects. Construction enterprises should standardize business methods and avoid legal risks.
5. Impact on financial accounting
As the cost of inventory and auxiliary equipment such as raw materials and auxiliary materials purchased by construction companies need to be deducted from the input VAT invoices, the total assets of the enterprise will decrease to a certain extent before the increase in the business. The debt ratio has risen.
For the financial statements of the enterprise, before the business reform, the main business income is the business tax, which is the tax-included income. After the business reform, the main business income does not include the value-added tax, which is the after-tax income. The calculation method of the enterprise has different profit margin values. It is assumed that the business income of the enterprise in the implementation of business tax and value-added tax is equal to the actual tax burden. After the reform of the business reform, there will be a phenomenon in which the operating income of the enterprise decreases and the profit rate increases.
The impact on corporate cash flow. Since construction enterprises generally implement the method of withholding and paying business tax, when the construction unit is inspecting and calculating the price, the business tax will be directly withheld from the inspection and payment and the payment will be directly withheld. Tax, and the construction company directly pays the value-added tax to the tax authorities in the current period. However, at this time, the construction unit’s inspection and pricing does not immediately pay the construction cost to the construction enterprise, that is, the value-added tax is paid before the project payment is received. Sometimes the lag time is relatively long, which will lead to an increase in the net cash flow of the business activities of the enterprise and increase the financial strain of the enterprise.
Second, the construction company's response to the reform of the camp
1. Strengthen the management of the deduction of input tax
In order to reduce construction costs, construction companies often choose self-employed and small-scale taxpayers as suppliers to supply materials and machinery and equipment rental. Now, due to the tax reform, construction companies should pay more attention to selecting partners with VAT taxpayer qualifications, and should check their corresponding deduction tax rates, obtain special VAT invoices, and improve the deduction of input tax, so as not to deduct the enterprise. VAT. After the business tax is changed to value-added tax, the amount of VAT directly depends on how much VAT special invoices the construction company can provide for the input deduction. Therefore, the higher the amount of the deductible that the enterprise can provide, the lower the amount of VAT paid. For example, increase the purchase of machinery and equipment, and reduce labor expenditures. Construction companies need to strengthen company management from now on, pay attention to the custody and collection of the corresponding VAT input deduction certificate. Moreover, there will be many unexpected problems in the pilot implementation stage. Construction enterprises should aim at the main reason for the inability to enter tax invoices, and enhance the sense of plugging leakage from their own management to minimize losses.
2. Cultivate tax talents and do tax planning
At present, some large-scale construction companies have already reserved tax planning talents in advance, do a good job in research on relevant tax policies, and conduct tax planning reasonably. Enterprises should start from the characteristics of construction enterprises and value-added tax, carefully study the relevant provisions of the new policy, and specialize in special regulations for the industry. Through conferences, internal newspapers and websites, financial personnel, enterprise management personnel, and materials procurement personnel. And the finalists will preach the professional knowledge about VAT, enhance their understanding of the basic principles of VAT, tax rates, taxation links and tax requirements, and cultivate awareness of special invoices in procurement materials and subcontracting to ensure that after the tax reform Proficiency in operation and operation immediately.
The impact of business tax reform on value-added tax on construction enterprises is extensive and profound, involving all aspects of enterprise management, especially related to legal, financial management, accounting and other important aspects. Enterprises must provide sufficient talent support in this regard to ensure Corporate taxation is legal and compliant. Legal counsel should thoroughly study relevant tax laws and regulations, tax policies, and financial accounting personnel should do a good job in accounting accounting for taxation. When necessary, enterprises should properly allocate tax planners, carry out reasonable tax avoidance, tax-saving, and share the tax dividends brought to the enterprise by tax reform, and realize zero-risk tax-related risks.