Research On The Impact Of "Business Tax To VAT" On The Business Strategy Of ZCB Construction Enterprise

Since the tax system reform in 1994,China has implemented the tax structure of the coexistence and separation of business tax and value-added tax.Starting in 2012,the pilot project of"Business tax to VAT" has been gradually implemented.On August 28,2015,Mr Jiwei Lou,Minister of Finance,said at the National Financial Work Conference that he would speed up tax reform and incorporate construction,finance,real estate and life service industries into the pilot"Business tax to VAT".In implementing the"Notice on the Comprehensive Promotion of the Pilot Business Tax to Tax on Value Added Tax"issued by the Ministry of Finance and the State Administration of Taxation(Fiscal and Tax[2016]No.36),it requires that the construction industry should be included in the pilot scope of Business Tax to Value Added Tax(hereinafter referred to as"Business tax to VAT")from May 1,2016,so that the construction industry has entered the era of Value Added Tax in an all-round way.The original intention of "Business tax to VAT"is to eliminate duplicate taxation and reduce the tax burden of enterprises by establishing tax categories scientifically.Business tax is an in-price tax and value-added tax is an out-of-price tax.Increasing"Business tax to VAT"will cause a series of changes in the national bidding system,budget quotation system and construction market.Construction enterprises are the main practitioners of the construction market.The implementation of"Business tax to VAT"will have a profound impact on their management.Under the background of business transformation,it is very important to study the management strategies of construction enterprises.Based on the comparative study of business tax and value-added tax,this paper studies the problems existing in project acceptance of construction enterprises from the perspectives of taxation information combing of construction units,bidding quotation management and bidding pricing management of A-supply materials;and from the perspectives of material cost management and subcontracting cost management under"Business tax to VAT" conditions,it studies materials and construction enterprises under"Business tax to VAT" conditions.Subcontracting cost management has some problems;from the perspective of engineering measurement management,revenue recognition and collection management,advance tax management and tax-related risk management under "business-to-increase",this paper studies the problems existing in the project settlement management of construction enterprises under"Business tax to VAT";and puts forward corresponding solutions accordingly;finally,it analyses the problems under"Business tax to VAT"in ZCB construction enterprises with a real case of the tactics for project contracting,cost management and settlement management.The conclusion of this study can provide suggestions for ZCB construction enterprises and other construction enterprises in the industry to make rational use of tax planning to reduce tax burden cost,improve management ability,optimize management mode and reduce construction management cost.