Reporters learned exclusively 24, State Administration of Taxation to be pilot projects in some sectors of approved agricultural input VAT deduction of input tax deduction rates and uniform tax rate of output tax. This will greatly reduce the tax burden on agricultural products processing enterprises.
In a "trial basis in some sectors of agricultural products on input VAT deduction management practices approved by the announcement" (draft), the National Tax Administration of clear, in liquid milk and dairy products and edible vegetable oil processing industry, approved the first pilot VAT deduction approach, while agricultural input tax deduction rate from 13% to modify the existing re-sale of goods for the taxpayer's applicable tax rate, which applies to taxpayers selling goods 13% tax rate, the rate of 13% deduction, the taxpayer sold 17% tax rate applicable to the goods, the net rate of 17%.
"Input tax deduction" is a major feature of value-added tax, corporate tax payable output tax minus input tax deduction is actually after the part. Output tax is the sale of goods should pay taxes, purchase goods input tax is what happens when taxes. However, as output tax and input tax rate is not uniform, agricultural products processing enterprises value-added tax is actually even higher than that of industrial enterprises.
According to the reporter, at present, China's main agricultural product processing enterprises in the early purchase of raw materials by 13% of the net general rate of VAT deduction, but according to the product in the sales tax rate of 17% output tax collected, the "high sign low-buckle "under the agro-processing enterprises of four percentage points more than the VAT tax, levy and general industrial enterprises is 17% deductible 17%, which is obviously not entirely fair for agricultural products processing enterprises. To this end, the agricultural sector has been calling people into the output tax rate will be unified.
Draft that will adjust the input tax deduction rate for the tax rate applicable to finished products, agricultural products processing enterprises can greatly reduce the VAT burden will encourage value-added processing of agricultural products, improve international competitiveness, promote agro-processing industry.
Although the draft does not specify a specific time trial, but according to the reporter, in liquid milk and dairy products and edible vegetable oil processing industry trial two, the State Administration of Taxation in accordance with the principles of the easier issues first and gradually pushed the new policy. ( Miao Dan)