| With the adoption of the policy “Substituting the VAT for business tax”,the construction industry has also been incorporated into the scope of substituting the VAT for business tax.For a long time,business tax has been used in tax-setting and tax collection of the construction industry in China.However,with the advancing pace of the reform,VAT will be replacing business tax in the tax system of the construction industry,which will consequently influence the engineering costs.In this article,after analyzing the status quo of the policy “Substituting the VAT for business tax” and common problems in it and comparing the similarities and differences between business tax and VAT in engineering costs,the formula of engineering costs calculation based on the new policy will be deduced as per the current comprehensive unit price mode,and then put into checking computations based on project cases,the results of which were compared with the engineering costs based on business tax,reaching the conclusion that construction costs are generally lower than before,and that once the policy is adopted,current comprehensive unit price mode will cause many problems to the reasonable determination of construction costs.In order to settle the problems,the article suggests the adoption of total cost unit price mode,of which the costs elements are explained.On the basis of this mode,the computational method and formula of engineering costs were deducted while data estimation and analysis were performed on project cases.Put forward the advantages of total cost unit price mode in engineering costs under the new policy were given by analyzing the data,moreover analyzed the influences of the new policy on engineering construction enterprises as well as corresponding solutions.By means of both the oretical deduction and project case computation,comparison between engineering costs before and after the policy adoption and between two pricing modes,the article analyzed the potential problems caused by the policy “Substituting the VAT for business tax” in construction industry as well as the corresponding solutions,suggested total cost unit price mode for engineering costs analysis under the new policy,thus ensuring the smooth nationwide promotion of substituting the VAT for business tax by providing theoretical support and suggestions for the sustainable and healthy development of the construction industry after the policy is adopted. |
