The Influence Of “Business Tax Reform Value-added Tax” On Project Cost And Countermeasures

Business tax to value added tax conversion is a key program to further reform the financial and taxing system,improve the economic and industry structure.The pilot project which revolves transportation industry and some modern service from 2012 in Shanghai is the beginning of the tax reform which changed Business tax to Value-added tax.In May2016,the construction industry was included in the scope of reform.China’s tax system reform was initially implemented in the entire industry.In 2017,the party’s report on the Nineteenth Congress emphasized once again “deepening the reform of the tax system and improving the local tax system”.Before the “Business tax to value-added tax”,the construction industry paid both the business tax and the value-added tax,and there was a phenomenon of repeated taxation,and the deduction chain of VAT was broken at the intermediate link.After the VAT reform,it can theoretically solve the problem of repeated taxation,and it can also carry out deductions at all stages,give full play to the tax-neutrality of value-added tax,reduce the tax burden on enterprises,and promote the development of the industry.At present,most of the impact of the “business tax to value-added tax” on the construction industry is from the perspective of financial accounting.However,in this type of research,there is a lack of systematic research on project cost management.For this reason,according to the relevant policies and regulations,analyzing the impact of the tax system reform on the cost of the project,with a view to providing reasonable suggestions for the related cost control problems.Firstly,this paper describes the research background,purpose and significance of research,research status,and summarizes the application of domestic and foreign scholars in the value-added tax,introduces the theory of value-added tax and engineering cost theory and cost control methods.Secondly,combining the connotation of project cost,I study the impact of the tax reform on the project cost.From the three perspectives of labor cost,material cost,and construction machinery cost,I focused on analyzing issues such as bid quotations,labor subcontracting,materials provided by Party A,supplier selection,and new purchases and leases of construction machinery and equipment after tax reforms.In response to the above problems,specific decision-making methods are proposed,and a decision-making model is established to provide reference for the cost control of project.Finally,combined with cases,I compare the different taxation methods used in bidding and offer reasonable and effective measures for the specific discussed.From the perspective of cost control,I clarify the status of subcontracting,sort out suppliers,etc.,and optimize the business management model,so as to provide constructive suggestions for reducing costs and increasing profits,so as to ensure the stable and effective development of the construction industry during the full implementation of value-added tax,with a view to profiting from the policy.