The Impact Of The "VAT Reform" On Construction Enterprises And Countermeasures

Business tax and VAT(value added tax)are the two main categories of taxes in China.The executive meeting of the State Council held on March 18th,2016 decided that from May 1st,2016,China will comprehensively push out the "replacing business tax with VAT"pilot program to include construction,real estate industry,finance and life service industry.At this point,the business tax will be withdrawn from the historical stage and the VAT system will be more standardized.How to deal with the reform of "replacing business tax with VAT "in the construction industry is an urgent problem to be researched and solved,while the construction enterprises are the departments which are most affected by the program.Therefore,it is the top priority for construction enterprises to adapt to the change of VAT policy.For a long time,China's construction enterprises have problems such as extensive management,imperfect management system,conservative thinking,uneven quality of employees and low level of mana gement,which have led to the weak anti-risk capacity of construction enterprises.It is urgent to sort out the work of project management of construction enterprises in response to the reform of the VAT change policy.The paper takes ChengDu Second Construction Enterprise Project as the research object,firstly analyzes the problems existing in the project management of the construction enterprise,and discusses the challenges faced by the enterprises after the "VAT Change" policy.Then it studies the coping strategies of the construction enterprises in the aspects of bidding management,contract management,purchasing management,accounting treatment and tax management after the tax reform.