| From May 1,2016,China has launched the pilot reform of business tax and value added tax comprehensively,including construction,real estate,finance,and living service industries.Since then,there has been no business tax in China’s economy and society,and the VAT deduction chain has been opened.The purpose of the reform is to reduce the tax burden on enterprises,adjust the industrial structure and promote social and economic development.As a basic industry in China’s economy,the construction industry is a low-profit industry.After joining the reform,it faces greater market competition.If construction companies want to increase their profit margins,scientific and effective cost control is the key.Before the reform,the main tax type of construction enterprises was business tax.The calculation was simple,and the cost accounting and control were relatively easy.The increase in the business reform made the calculation of the enterprise ’s tax burden complicated,and it was also an innovation in cost control.Changing the extensive cost control ideas of construction enterprises,implementing refined management,and applying advanced cost control methods can enable enterprises to go farther after the reform.This article starts with the related theories of VAT reform and cost control,and takes A construction enterprise as an example to study the problems and causes of A company’s cost control after VAT reform and put forward relevant suggestions.In order to realize the research purpose,based on a large amount of literature,this paper proposes the cost control theory of the construction industry after replacing the business tax with a value-added tax,including lean cost management theory,constraint control theory and cost-benefit analysis theory,and explains the key concept of cost control.With a theoretical basis,I began a comprehensive analysis of Enterprise A.In-depth research found that after the reform of the company,Enterprise A had major cost control issues such as excessive project cost expenditure,unclear positioning of cost control mechanisms,and incomplete cost control methods.After analyzing the problems of Enterprise A,this article explains the reasons for the increase in the cost of Enterprise A from the perspective of tax burden,and believes that the main reason for the increase in the cost of Enterprise A is insufficient input tax deduction.Finally,in view of the problems and reasons,the cost control of A construction enterprise is proposed to obtain sufficient input tax deduction and strengthen the internal management of the enterprise. |
