Study On The Impact Of "Business Tax Replaced With VAT" On The Construction Enterprise Project Cost Management

In November 2011,the Ministry of Finance and the State Administration of Taxation jointly issued the pilot program for "Business Tax Replaced with VAT" reform.From January 1,2012,pilot program for "Business Tax Replaced with VAT" took the lead in the transportation and part of the modern service industry in Shanghai.By March 23,2016,the State Council decided to expand the pilot scale to the construction and other industries."Business Tax Replaced with VAT" pilot work is fully implemented.Because of the wide range of construction industry and complex economic business,the reform of"Business Tax Replaced with VAT" in the construction industry has been highly concerned by the experts,scholars and relevant staff of the industry.The main purpose of the reform of "Business Tax Replaced with VAT" is to improve the value-added tax deduction chain,eliminate the problem of duplication of tax,and realize the purpose of structural tax reduction.However,because of the complex economic business and the difficulty of the deduction of the construction industry,the tax burden of the enterprise is greater.Therefore,from the perspective of construction enterprises,this paper uses literature research,theoretical analysis and case analysis to analyze the impact of"Business Tax Replaced with VAT" reform on the tax burden and cost management of construction enterprises,and puts forward relevant countermeasures and suggestions.This paper first briefly introduces the concepts and differences between business tax and value-added tax,expounds the tax burden theory,tax fairness principle,tax burden transfer theory and other basic theories,summarizes the progress of the reform of the construction industry and the change of the enterprises after the "Business Tax Replaced with VAT".Secondly,it analyzes and studies the effect of "Business Tax Replaced with VAT" on the tax burden of construction enterprises,and briefly explains the change of tax mode and project valuation rule after the reform.From the statistical level of the construction industry added value and enterprise survey data,the impact on the overall tax burden of construction industry after the "Business Tax Replaced with VAT" reform is analyzed,and the change model of tax burden is established respectively.This paper selects the actual case analysis of housing construction projects and municipal road projects,and obtained the actual change of the tax burden and the influence factors of construction enterprises after the reform.The proportion of the tax deduction and the tax rate of input tax is the key factor that affects the tax burden.On this basis,from the point of cost management of engineering projects and the consideration of the key links and main components of the cost management of construction projects,this paper further analyzes the influence on construction project cost management from the aspects of project contract management,procurement management,subcontracting management and mechanical equipment management.Finally,according to the conclusion of the research and analysis,the paper briefly put forward the countermeasures and suggestions for the construction enterprises to deal with the impact of the construction industry from the perspective of tax planning,cost management,etc.