Construction Project Cost Analysis And Response Strategy Under The Background Of Replacing Business Tax With VAT

In order to reduce corporate tax burden,reduce repeated tax payments,and promote a better virtuous circle of social taxation,the Ministry of Finance and the State Administration of Taxation jointly issued a notice and decided to start construction,real estate,and living services from May 1,2016.All taxpayers of business tax,including business,shall be included in the scope of the pilot,and the payment of business tax shall be changed to VAT.After replacing the business tax with a value-added tax,the initial VAT rate implemented by the construction industry is 11%,which is 8 percentage points higher than the business tax rate of 3%.Therefore,some enterprises are worried about the increase of corporate tax burden after replacing the business tax with a value-added tax.However,according to the calculation by experts before replacing the business tax with a value-added tax,the actual tax burden is reduced after deducting the input tax deduction.Therefore,for construction enterprises,whether the tax burden of construction projects will increase or decrease after replacing the business tax with a value-added tax,and how to deal with the adverse impact of tax reform on construction projects,have become the most concerned issues.At first,this paper USES literature research analysis the camp change with the increase of the project valuation rules,through the camp before and after the change to increase the comprehensive unit price is different,the calculation methods of tax calculation,this paper camp to increase the project cost of construction project,bidding quotation and the influence of the tax burden,and build the construction of tax increase and decrease measure model based on cost analysis.Then using comparative analysis method to analyze a case project completion costs,tax increase or decrease in model validation construction projects,to quickly determine the camp to increase construction project after taxes increased or not,and,according to the results of the cost analysis based on the Angle of construction project management strategies and Suggestions: first,adjust the enterprise organization structure,change the existing management mode,set up the complete VAT deduction chain;Secondly,strengthen the subcontracting management of construction projects and material procurement management,and select suppliers according to the principle of "lowest comprehensive procurement cost and maximum profit".Finally,the contract management of construction projects should be strengthened to prevent tax risks from the source and pay attention to settlement management to avoid losses caused by the failure of timely deduction of input tax due to delayed settlement.The research results of this paper exemplify the controversial idea of replacing business tax with VALUE-ADDED tax to reduce the tax burden of construction projects,and also accumulate experience for the implementation of subsequent construction projects,which is conducive to the construction projects to better enjoy the dividend of the policy.