The Impact Of The VAT Reform On The Project Cost Of The Construction Industry And The Response Of The Project Management

The construction industry occupies a very important position in the development of national economy and is one of the pillar industries in China.In 2015,the construction business tax revenue amounted to 513 billion 600 million yuan,accounting for 26.6% of the total sales tax revenue of the country,second only to the real estate industry.Since May 1,2016,the construction industry has been put into the pilot scale of the camp to increase the value added tax rate of 11%.Because many industries in the construction industry and the national economy have a strong tax correlation,the resulting tax impact is large and the policy effect is complex.In addition,in addition to the characteristics of the liquidity and dispersion of the construction industry,it brings more uncertainty to the production and management and internal management of the enterprises,especially the impact on the construction cost of the construction industry.Therefore,it is very important for the construction enterprises to formulate strategies to reduce the cost of enterprises,improve the efficiency of enterprises and enhance the competitiveness of enterprises.early two years after the pilot,the Executive Council of the State Council decided to reduce the value-added tax rate of the construction industry from 11% to10% since May 1,2018,in order to further reduce the burden on construction enterprises.But what is the impact of camp reform on construction cost? How does Guizhou respond to the background of the country's vigorous implementation of the camp reform? What is the impact of the changing tax system on the construction cost of Guizhou's construction industry? What kind of project management will the corresponding construction enterprises respond to?In view of this series of problems,this article uses the combination of theory and empirical method,first through the actual case of Guizhou province analysis and demonstration,in-depth analysis of the different tax methods to increase the construction cost of the construction industry to increase the impact of construction.Then we establish the mathematical model of the increase and decrease of the cost of the project and the increase and decrease of the tax burden,and analyze the profit increase and decrease of the construction enterprises and the increase and decrease of the cost of the construction.Through empirical analysis and theoretical analysis,based on the national policies and regulations,this paper draws a conclusion based on the specific implementation of Guizhou province.This conclusion is suitable for Guizhou and also has some reference value for other provinces.the conclusion is: 1.The impact of business transformation on the change of the cost of Jian an is limited and its sensitivity is not strong enough.2.the proportion of VAT cost to project cost is the key factor affecting the profit of enterprises,and is also the basis for enterprises to choose the tax calculation method.Finally,starting from the impact of the increase on the cost of the project,this paper expounds the concrete measures of engineering management after theconstruction industry has changed the value-added tax from four aspects,such as engineering bidding,engineering cost management,procurement management and subcontracting management.