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What's the new deal of VAT reduction? Content of the new deal of VAT reduction

What's the new deal on VAT? What's the new deal on VAT? Many of you don't know. Let's take a look with Xiaobian.

What's the new deal of VAT reduction

From April 1 this year, the State Council will implement the new policy of large-scale VAT reduction. In addition to substantially reducing the VAT rate, it will also significantly increase the deductible input tax.

The premier of the State Council presided over the executive meeting of the State Council on March 20. In addition to reiterating the already clear move of reducing the 16% value-added tax rate of manufacturing and other industries to 13% and the 10% value-added tax rate of transportation and construction to 9% from April 1, three new measures were added.

Among them, the first is to further expand the scope of input tax deduction, include passenger transport services into the deduction, and change the input tax paid by taxpayers for acquiring real estate from two-year deduction to one-time full deduction, so as to increase the current deductible input tax of taxpayers. For taxpayers whose main businesses are postal, telecommunication, modern service and life service industries, 10% of the input tax will be added to offset the tax payable. The implementation period of the policy is tentatively up to the end of 2021. To ensure that the tax burden of all industries is reduced but not increased.

The reporter learned that passenger transport service is one of the businesses that occur frequently in enterprises, such as urban transportation, travel expenses, shuttle bus commuting and so on. Previously, the Ministry of Finance stipulated that the purchased passenger transport service should not be deducted from the output tax. This time, it is clear that the passenger transport service should be included in the deduction, which will reduce the burden of relevant enterprises. What's the new deal of VAT reduction

In the VAT input tax deduction, the input tax paid by real estate accounts for a considerable proportion. Previously, when the pilot of replacing business tax with value-added tax (VAT) was launched, only the input tax paid by real estate was allowed to be deducted in two years. This time, it was clearly changed to one-time full deduction, which can make enterprises enjoy burden reduction faster.

In addition, as the 16% VAT rate is reduced to 13% and the 10% VAT rate is reduced to 9%, the input tax will be reduced and the tax burden may rise for the modern service and life service industry, which still keeps the 6% tax rate unchanged.

As of the end of 2021, in order to avoid the increase of the income tax of modern postal services and the increase of the income tax of telecommunications services, the tax credit should be increased by 10%.

Previously, a number of financial and tax experts told reporters that the purpose of additional deduction of input tax is to maintain the original input tax deduction, so as to make the enterprise tax burden not increase.

In addition to increasing input tax deduction, the meeting of the State Council also made it clear that the new tax allowance of taxpayers after the implementation of the policy will be refunded according to relevant regulations.

Last year, the state has made it clear that in advanced manufacturing industries such as equipment manufacturing and modern service industries such as R & D, including 18 major categories of industries such as special equipment manufacturing, research and experimental development, and power grid enterprises, the VAT retained tax will be refunded in advance and a certain proportion will be refunded.

According to the data of the State Administration of Taxation, 114.85 billion yuan of tax rebates were retained last year. VAT tax rebate can reduce the occupation of enterprise funds, reduce the pressure of enterprise financing and reduce the burden of enterprises.

In addition, the above meeting also made it clear that the export tax rebate rate of some goods and services and the applicable deduction rate of purchased agricultural products should be adjusted accordingly. At the same time, we will increase the transfer payment to local governments, focusing on the central and western regions and counties and cities in difficulties.