The impacts of camp reform on all aspects of the construction industry are: 1, and the impacts on the tax management of the construction industry: First, the tax payment location has changed: after the reform, construction enterprises will no longer declare their taxes to the competent tax authorities in the place where taxable services occur, but to the local tax authorities where the institutions are located. Second, the withholding agent has changed: if the current construction projects are subject to general contracting and subcontracting, the general contracting will be the withholding agent. After the reform, both the general contracting and subcontractors will be value-added taxpayers, and the general contracting will no longer be the withholding agent. Third, the scope of taxation has changed: the construction industry is a comprehensive industry. Whether the upstream industries such as engineering survey, engineering design, scientific research institutes, supervision and consulting, equipment leasing, sand and gravel suppliers and engineering services change from business tax to value-added tax is related to whether the construction enterprises can obtain deductible VAT tax stamps, which will have a greater impact on the scope of taxation of construction enterprises. Fourth, the change of tax rate: the construction industry is no longer levied at the business tax rate of 3%, but instead at the new tax rate of 1 1%. In addition, construction enterprises will also undergo great changes in tax declaration, the acquisition of value-added tax stamps, the deduction of paid value-added tax, the tax payment period and preferential policies. 2. The impact on the financial situation of the construction industry: First, the changes brought about by the total assets: because the value-added tax is extra-price tax, the inventory cost of raw materials, auxiliary materials and fixed assets such as machinery and equipment purchased by construction enterprises need to be deducted from the input tax according to the obtained VAT invoice, and the total assets in the enterprise will decrease to a certain extent compared with that before the change, causing the asset-liability ratio to rise. Second, the changes brought to the income and profits of enterprises: after the business tax is changed to value-added tax, due to the difficulties in obtaining value-added tax stamps for some goods purchased in some circulation links, the cost of outsourced labor services and false invoices, this part of the input value-added tax cannot be deducted, and enterprises pay more value-added tax, and the total realized profits of enterprises will decline. Third, the impact on the cash flow of enterprises: due to the nonstandard construction industry in China and the low proportion of project payment, the construction unit often deducts 10-20% quality deposit, temporary deposit, advance payment, etc. in each phase of work inspection and valuation, and some projects are even lower. These withheld funds are often not paid until the final accounts of the project are completed, but the value-added tax must be paid in the current period, which will inevitably lead to an increase in the operating cash flow expenditure of enterprises and increase the financial shortage of enterprises. 3. Impact on the overall tax burden of the construction industry The impact of the change of business tax to value-added tax on enterprises mainly depends on factors such as the applicable tax rate level, gross profit margin and the proportion of deductible items in operating costs. Construction enterprises with low applicable tax rate, low gross profit margin and relatively high deductible items benefit greatly after the tax reform. Because the relative business tax rate of value-added tax has increased and the deduction is not sufficient, after the business tax in the construction industry is changed to value-added tax, the first problem is the initial tax deduction, which mainly involves the input tax deduction of fixed assets such as construction enterprises' initial inventory materials and machinery and equipment. After the business tax is changed to value-added tax, on the one hand, it will help construction enterprises to improve the level of machinery and equipment, improve their financial situation, optimize their asset structure and enhance their competitiveness; On the other hand, by introducing new machinery and equipment and assembly lines, the number of workers and labor costs are reduced, which in turn reduces the tax burden of enterprises. Finally, about 35% of the labor costs are not all the labor costs incurred by the enterprise itself, including at least 20% of the labor subcontracting costs. Because it is still inconclusive whether the state will change the business tax to value-added tax for labor service companies, if the reform is not carried out simultaneously, this part of the labor subcontracting costs will have the greatest impact on the value-added tax burden of construction enterprises. 4. Impact on revenue recognition of construction industry Construction contracts are divided into fixed cost contracts and cost plus contracts. First, based on the fixed cost contract, the impact of changing the business tax to value-added tax on the income and gross profit confirmation of the construction industry. Before the business tax is changed to value-added tax, the contract income includes business tax because the business tax is an in-price tax; After the business tax is changed to value-added tax, the value-added tax is extra-price tax, and the contract income does not include value-added tax. At the same time, the input tax of value-added tax due to cost-related raw materials, fuel and rental fees in the estimated total cost of the contract is no longer a part of the actual cost, and the estimated total cost of the contract will be less than before the change. In addition, the contract costs confirmed in the current period only exclude the VAT input tax, while other expenses such as labor costs cannot exclude the VAT input tax; The value-added tax is excluded from the contract income recognized in the current period according to the total price, while the value-added tax is only partially excluded from the contract expenses recognized in the current period. Therefore, the contract income recognized in the current period and the contract gross profit recognized in the current period are much less than before the change. Second, based on the cost-plus contract, the impact of changing the business tax to value-added tax on the revenue recognition of the construction industry. A cost-plus contract is a construction contract based on the cost agreed in the contract or by other means, and a certain proportion of the cost or a fixed fee is added to determine the project price. After the business tax is changed to VAT, the business tax is paid based on the total contract price (total operating income) after deducting the VAT input tax that can be deducted from the actual cost, but the actual cost does not include the VAT input tax that can be deducted according to the regulations, and the actual cost is less than before the change. Therefore, a certain proportion of the cost or fixed expenses will also change, and the actual total operating income may be more than before the levy. 5. Impact on tax planning of the construction industry According to the provisions of the Pilot Program of Changing Business Tax to Value-added Tax, the business tax income originally belonging to the pilot area still belongs to the pilot area after the value-added tax is changed, and the tax is put into storage separately. In the long run, according to the current practice that business tax is generally paid at the location of the project, after the change, in order not to affect the local tax sources, it is speculated that the value-added tax will be levied in advance at the location of the project and allowed to be deducted at the location of the institution. In this way, enterprises will face more complicated tax planning and management. First, all the original VAT invoices that can be deducted according to the regulations should be summarized to the place where the enterprise is located, and the place where the enterprise is located will deduct the input tax when paying the VAT. For large-scale construction enterprises, it is not easy to collect VAT tax stamps because of the large number and wide distribution of engineering projects. Second, at present, many projects purchase some materials and small equipment by themselves and rent machinery by themselves. Basically, they sign contracts with suppliers or lessees in the name of project departments or headquarters established by enterprises. Enterprises should standardize relevant contracts, and all foreign trade contracts should be signed in the name of enterprises, and the names of VAT invoices obtained must be consistent with the full names of enterprises. At the same time, the place where the enterprise is located should collect all the original VAT tax receipts that occurred in the current period of different projects in a timely manner, and submit them to the tax authorities for deduction when reporting the current VAT. Third, the current enterprise inspection and valuation income credentials confirmed by the construction unit and the value-added tax that may be pre-collected by the local tax authorities should be collected in time to the location of the enterprise for tax declaration and deduction. Fourth, due to the complexity of value-added tax payment and management, after the turnover is changed to value-added tax, the location of the enterprise institution needs to set up special tax posts and add relevant personnel to manage the enterprise tax planning in a unified way.