To assist the building industry in understanding overall effects of “transition from business tax to value-added tax” on the companies and to validly master and utilize the relevant proper countermeasures, Luculent expert team carries out the special research on “business tax-VAT transition” in the building industry, reforms and constructs the system from the three aspects of VAT control platform, VAT core business system and accounting & tax calculation to propose the special solution of “business tax-VAT transition”. And it can validly assist the building industry in stable transition from business tax to VAT and effectively control the corporate taxation risk to reduce the tax burden and better the corporate management performance.
To assist the building industry in successfully facing the challenges and opportunities incurred by “the business tax-VAT transition”, Luculent proposes the special solution of “business tax-VAT transition” based on its engineering project control solution and uniformly controls the value-added tax information such as contract, material, fund, voucher and taxation depending on its strong LiEMS platform for stable transition from business tax to value-added tax in the building industry, so it can validly control the corporate taxation risks and improve the corporate management level as well as the market competitiveness.
1. It can integrate the four flows of contracts, materials, funds and vouchers into one to effectively avoid taxation risks;
2. It integrates the taxation system to automatically certificate invoices issued and received and effectively avoid invoice issuance risks;
3. It enhances tax burden monitoring and prevents the abnormal risks related to tax burden so as to avoid loss of tax amounts occupied;
4. It takes the integrated control of “business-finance-taxation” and automatically generates the VAT returns to improve the statement preparation efficiency and ensure the statement data quality;
5. It verifies real-time, dynamic compliance to the norms in the VAT control process and assists the management level at each level in making the scientific decisions.
Luculent special solution of “transition from business tax to VAT” takes the integrated design conception of business tax control as the guideline, centralized and intensive control system for the project group as its basis and provides the special “business tax-VAT transition” solution integrating four flows of contracts, materials, funds and vouchers through the lean control over the life-cycle VAT vouchers, the professional taxation system and risk control and the efficient and coordinated flat control.
Integrated design. Based on the design conception of business, finance and tax integration, the system can ensure combination of the four flows including “contracts, materials, funds and vouchers” and meet the control requirements for tracking sources.
Full-process contract control. The system establishes the contract system of the tax control strategies, enhances the tax risk evaluation ahead of signing the contracts and utilizes the taxation clauses on standardizing the contract templates to monitor the contract schedule nodes and improve the contract control level as well as the risk prevention capability.
To satisfy the management requirements with price and tax separated. The system enhances control over the input invoice acquisition and the procurement process such as materials, equipment and labor, avoids the received invoice risk after “the transition from business tax to VAT” and supports the input tax control in the whole business process; meanwhile, the system supports the price-tax separated control of core business to meet the demands for the industrial tax rate change.
Lean VAT control. The system enhances standard control over the basic taxation information and enhances the input tax control to meet the demands of deductible VAT, so the system keeps the special VAT vouchers controllable, controlled and under control for the service life.
To exercise the contract control requirements with the two lines of revenue and expenditure. The fund control takes contracts as its carrier, the contract clauses as the operative norm and the tax-related nodes of contract revenue and payment as the key supervision object of the tax amounts so that the two lines of revenue and expenditure control can reflect the flow direction of the project input and output taxes in a true and dynamic way.
To dynamically monitor the multi-dimensional process. The system enhances the tax burden monitoring in multiple dimensions and checks the real-time and dynamic compliance to the norms in the VAT business process so as to prevent abnormal tax burden risk and avoid the loss of tax amounts occupied for the purpose of assisting the management at each level in making scientific decisions.
1. It establishes the contract management system, utilizes the contract tax control strategy and improves the contract control level to avoid the contract performance risk.
1) Enhance the preliminary management of signing the contracts and reduce the project risks.
2) Standardize the contract clauses and avoid the clause-related risks through configuration of the contract templates.
3) Strictly monitor the contract schedule nodes and ensure the efficient fund utilization.
4) Enhance control over contract documents and ensure compliance and safety of such contract texts.
2. The system can standardize the whole process of procurement control and use the voucher tax controlling strategy, reducing the procurement cost and bettering the procurement quality.
1) Control the whole process of procurement and improve the control capability over the material procurement process.
2) Standardize the supplier management and optimize the comprehensive procurement cost.
3) Centralize procurement and better the resource configuration capability.
4) Search for sources, improve overall procurement quality and efficiency and save the procurement cost.
3. It can stipulate the standard revenue and expenditure process, standardize the fund management behavior and effectively control the fund flows.
1) Taking the contract clauses as its criterion, establish two lines of revenue and expenditure and strictly exercise the contract management.
2) Through overall budget, realize pre-event plan –event control – post-event analyses of costs.
3) Conduct lean cost management and control expenses in multiple dimensions.
4) Establish the fund management system and effectively control the corporate costs.
4. It carries out the lean VAT control and excavates the profitable space in depth.
1) Based on the integration of four flows, avoid the tax risks.
2) Strength the basic taxation information for control standardization and enhance the basis for VAT control.
3) Take the special voucher control for life-cycle VAT and ensure special VAT vouchers controllable, controlled under control.
4) Enhance the input tax control and meet the deductible demands of VAT.
5. It aids decisions and supports rapid and scientific decisions by the decision-making layer.
1) Establish the KPI indicator control system.
2) Provide the control cabin for the management staff at the high level.
3) Provide the project monitoring tools for the management at the intermediate level.
4) Mobile applications lead to easy and efficient VAT control.
Gansu Anju Construction Engineering Group Co., Ltd. established in 1995 provides the building construction (Class I general contracting), building decoration (Class I specialized contracting), smart building construction (Class II specialized contracting), hoisting equipment installation (Class III specialized contracting), municipal utility construction (Class II general contracting), steel structure construction (Class III specialized contracting) as well as other products and services, so it has become a local company with a lot of influence in Lanzhou. Facing the current management state of Anju Group, the system takes the integrated design conception of business tax control as its guidelines, centralized and intensive control system for the project group as its basis and provides the special “business tax-VAT transition” solution integrating four flows of contracts, materials, funds and vouchers through the lean control over the life-cycle VAT vouchers, the professional taxation system and risk control and the efficient and coordinated flat control. Meanwhile, it has the expandability and meets the management requirements for the corporate development in the future.