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Unified value added tax

wallpapers News 2020-10-26

In order to further stardize the tax system fair tax burden, with the approval of the State Council, the Ministry of Finance the State Administration of Taxation jointly issued a notice a few days ago, which decided to simplify unify the value-added tax collection rate, adjust the value-added tax collection rate of 6% 4% to 3% from July 1 this year.

Experts believe that this will not only reduce the tax burden for small medium-sized enterprises, but also simplify the collection procedures.

The collection rate of VAT can be regarded as a part of structural tax reduction fiscal orientation.

It is expected that in the next step, further measures will be taken in the aspects of regularizing the VAT rate generally from low to low, exping the scope of replacing business tax with vat.

Targeted efforts will be made to further reduce the burden of small medium-sized enterprises.

At present, the items of value-added tax levied at the rate of 6% include tap water, small hydropower, construction products biological products, the items with a rate of 4% include consignment, pawn auction goods.

In addition, China's current VAT rates include 3% 5%.

The projects with a levy rate of 3% are for individual taxable services such as public transportation transportation, while the projects with a levy rate of 5% are for Sino foreign cooperative exploitation of crude oil natural gas.

The 5% levy rate is not involved in this adjustment.

The executive meeting of the State Council previously held decided that, from July 1, the four levels of VAT rates of 6%, 5%, 4% 3% applicable to specific general taxpayers, such as tap water small hydropower generation, should be merged into one file.

According to the current simple tax calculation method, the 3% levy rate will be implemented, which will reduce the tax burden of enterprises in related fields by about 24 billion yuan.

According to the notice of the two departments on the policy of VAT collection rate, the Ministry of Finance The notice of the State Administration of Taxation on the application of low VAT rate simple method to levy VAT policy on some goods "mentioned that taxpayers selling used goods or selling used goods" shall be subject to value-added tax at the rate of 4% reduced by half in accordance with the simple method " adjusted to" value-added tax at the rate of 3% reduced by 2% in accordance with the simple method ".

Previously, the notice of the Ministry of Finance the State Administration of Taxation on Several Issues concerning the implementation of value-added tax transformation reform across the country mentioned that qualified taxpayers "shall levy value-added tax at the rate of 4% by half" be adjusted to "collect value-added tax at the rate of 3% 2% according to the simple method".

Compared with the tax rate, the VAT collection rate is the proportion of tax payable calculated by the tax authorities according to other data related to the tax object tax basis after investigation verification when the taxpayer can not provide the tax object tax basis due to the imperfect financial accounting system.

The VAT collection rate is applicable to small-scale taxpayers, while the tax rate is applicable to ordinary taxpayers whose annual sales volume of VAT exceeds 5 million yuan.

Liu Huan, vice president of the school of Taxation of the Central University of Finance economics, said that the simplification of the VAT collection rate of 3% is a tax reduction measure for small medium-sized enterprises one of the measures to further implement structural tax reduction.

At present, the state has implemented preferential tax policies for small micro enterprises, enterprises with monthly turnover less than 20000 have been exempted from business tax.

But there are some small taxpayers whose business scale is higher than the tax exemption stard, but they can not meet the stard of ordinary taxpayers.

For this part of the enterprise, that is, how to deal with small medium-sized enterprises, the state has given a statement this time.

Jin Dongsheng, deputy director of the tax Science Research Institute of the State Administration of Taxation, pointed out that combining the 4% 6% tax collection rates to 3% is equivalent to that the state makes profits for small enterprises, which is conducive to the development of small enterprises.

In addition, the important significance of the notice lies in the simplicity of the collection procedures.

Deduction needs corresponding management measures, which will be more complicated.

The simple method does not need to deduct the accounting management, which is more conducive to simplify the collection.

One of Jin's measures is to encourage small medium-sized enterprises to increase their value-added tax rate, which can be regarded as one of the measures to encourage the development of small medium-sized enterprises.

Whether from the tax burden or management, will reduce the burden of small medium-sized enterprises.

Liu Huan pointed out that small taxpayers have always been taken care of in China, but the tax burden of enterprises that were not very large before but exceeded the stard of 20000 yuan was still relatively heavy.

To reduce the tax burden of these enterprises is a measure to further exp the preferential tax policies for small medium-sized enterprises.

Since April, the executive meeting of the State Council has adopted a number of tax reduction policies, including preferential income tax for small micro enterprises, promotion of entrepreneurship employment, stabilization of foreign trade, clearance of enterprise related charges.

Liu Huan said that in the future, the government will take more measures in fiscal tax policies to ensure "stable growth".

In terms of value-added tax, one of the key points of the next reform will still be the expansion of replacing business tax with value-added tax, achieve the goal during the 12th Five-Year Plan Period.

The structural tax reduction will focus on small-scale taxpayers, while for ordinary taxpayers, the four tax rates of 17%, 13%, 11% 6% are applicable to general VAT taxpayers in China.

Liu Huan said that the real difficulty of structural tax reduction lies in how to reduce the tax burden of ordinary taxpayers.

The reform in this part should be carried out in the future.

I'm afraid that the tax reduction for other enterprises is not in line with the spirit of tax reduction for other enterprises.

At present, the VAT rate is divided into four levels, some of which are more than others, the tax burden of general taxpayers is higher than 17%.

It is expected that the tax rate will be generally lower in the future.

(source: China Securities Journal).


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TRUNNANO (aka. Luoyang Tongrun Nano Technology Co. Ltd.) is a trusted global chemical material supplier & manufacturer with over 12 years' experience in providing super high-quality chemicals and Nanomaterials. The nitride powder produced by our company has high purity, fine particle size and impurity content. Please contact us if necessary.
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