The Impact Analysis Of VAT Reform On Civil And Erection Cost Of Y Comapany

Construction industry accounts for about 7%of GDP,which is an important part of our national economy.The pilot program of replacing business tax with Value-Added Tax(VAT)shall be implemented across the construction industry.Tax system changes make the entire valuation rules have changed accordingly.This article mainly discusses the general taxpayers,discussing the changes of the civil and erection cost of projects from the view of company Y.The research mainly contains six chapters.The first chapter is the introduction,introduces the research background and significance of this article,briefly describes the research structure and research methods.The second chapter is a theoretical overview,a brief introduction to the business tax,the VAT and the VAT reform.The third chapter is about the change of civil and erection cost,and analyzes the pricing method of various components of civil and erection cost under business tax and VAT.The fourth chapter is the change of civil and erection cost of company Y after VAT reform.The fifth chapter is the Monte-Carlo simulation,the model was simulated and the sensitivity analysis was carried out.The sixth chapter is the conclusion and the suggestion,summarizes the research of the full text and points out the inadequacies of the research.Finally,some suggestions are proposed to the company Y according to the simulation results.Through the research of company Y,obtains the following main conclusions.First of all,the VAT reform in construction business has indeed played a positive role in reducing tax losses and saving costs for the company Y.Second,the main factors that affect the change of civil and erection cost after the VAT reform are labor costs,materials costs,equipment costs and management cost coefficient,the main factors that affect the change of the tax are the input VAT deductions,materials costs and Mechanical Costs.Finally,using Monte-Carlo to predict the change of construction cost can easily deal with the uncertainty problems and provide the basis for decision-making.