value-added tax

From the tax principle, value-added tax is a turnover tax levied on the added value of many links such as commodity production, circulation and labor services or the added value of commodities. Extra-price tax is implemented, that is, it is borne by consumers, and tax is levied only when there is value-added, but it is difficult to accurately calculate the added value or additional value of goods in the production and circulation process in practice. Therefore, China also adopts the internationally common tax deduction method, that is, according to the sales of goods or services, the output tax is calculated at the prescribed tax rate, and then the value-added tax paid when obtaining goods or services is deducted, that is, the input tax, and the difference is the taxable amount of the value-added part. This calculation method embodies the principle of tax calculation according to value-added factors.

The formula is: tax payable = output tax-input tax.

VAT calculation formula: sales including tax /( 1+ tax rate) = sales excluding tax.

Sales excluding tax × tax rate = tax payable

It says that VAT is an "extra-price tax". What is extra tax? That is, the extra-price tax is borne by consumers. For example:

Your company purchased 100 pieces of goods from Company A, and the amount was 10000 yuan, but your company actually paid the other party 10000 yuan instead of10000+10000 *17.

Why do the goods you bought cost 10000 yuan? Because at this time, your company, as a consumer, has to pay more value-added tax of 1700 yuan, which is in addition to the value-added tax. This 1700 yuan VAT is your company's "input tax". Company A overcharged the value-added tax of 1.700 yuan, which does not belong to Company A. Company A has to pay the value-added tax of 1.700 yuan to the state. Therefore, Company A only collects and pays taxes, and does not bear taxes.

Another example is:

Your company processed 100 purchased goods into 80 A products and sold them to Company B, achieving sales of 15000 yuan. Your company charged Company B not only 15000 yuan, but 15000+05000 * 65438+. The value-added tax of 2550 yuan collected by your company is not yours, and your company has to hand it over to the state. Therefore, the value-added tax of 2550 yuan is not borne by your company, but is only collected and remitted by your company.

If your company is a general taxpayer, the input tax can be deducted from the output tax.

The input value-added tax paid by your company for purchasing goods is 1700 yuan, and the output value-added tax charged for selling product A is 2550 yuan. As your company is a general taxpayer, you can deduct the input VAT from the output VAT. Therefore, the value-added tax paid by your company to the country is not 2550 yuan charged to Company B, but 2550- 1700=850 yuan. So this was paid to your company in 850 yuan when Company B bought Product A from your company, and it was handed over to the country through your company. Company B buys your company's A products, and then sells them to company C, and company C sells them to company D ... All these processes have to pay value-added tax, which is passed on to the final consumer until it is sold to the final consumer, so value-added tax is also a turnover tax.

If you are an accountant, you can see from the accounting entries:

When your company buys 100 pieces of goods from Company A, the accounting entries are as follows:

Borrow: raw materials 10000

Taxes payable-VAT payable (input tax) 1700

Loan: Accounts payable-Company A 1 1700

The entry does not take 1700 yuan as company expenses, but as "tax payable", because your company is a general taxpayer and the input tax can be deducted.

When your company sells 80 A products to Company B, the accounting entries are as follows:

Debit: Accounts Receivable-Company B 17550

Loan: main business income 15000.

Taxes payable-VAT payable (output tax) 2550

In the entry, the value-added tax of 2550 yuan charged to company B is not regarded as the company's operating income, but "tax payable", because it is not owned by your company, but should be paid to the national tax.

Output tax-input tax = 2550- 1700 = 850 yuan is a tax to be paid to the state.

Value-added tax is a tax levied on the value-added of units and individuals who sell goods or provide processing, repair and replacement services and import goods. 199365438+February 13 the State Council issued the Provisional Regulations on Value-added Tax in People's Republic of China (PRC), and1February 25, 994 the Ministry of Finance issued the Detailed Rules for the Implementation of the Provisional Regulations on Value-added Tax in the People's Republic of China.

The advantages of implementing value-added tax are: first, it is conducive to implementing the principle of fair tax burden; Second, it is conducive to the rationalization of production and operation structure; Third, it is conducive to expanding international trade; Fourth, it is conducive to the country's universal, timely and stable fiscal revenue.

-

I. VAT taxpayers

Units and individuals that sell goods or provide processing, repair and replacement services and import goods within the territory of People's Republic of China (PRC) are taxpayers of value-added tax.

Two. Scope of value-added tax collection

The scope of VAT collection includes: 1, goods; 2. Taxable services; 3. Imported goods.

Three. VAT rate

The VAT rate is divided into three grades: basic tax rate 17%, low tax rate 13% and zero tax rate.

Four, the tax basis of VAT

Taxpayers selling goods or providing taxable services shall be taxed according to the sales amount, and imported goods shall be taxed according to the prescribed taxable value.

Verb (abbreviation of verb) Calculation of VAT tax payable

1. Taxable amount of general taxpayers = current output tax-current input tax.

2. Taxable amount of small-scale taxpayers = sales including tax ÷( 1+ collection rate) × collection rate.

3. Taxable amount of imported goods = (customs duty paid price+customs duty ten consumption tax) × tax rate.

VI. VAT declaration and tax payment place

The time of VAT tax declaration is related to the tax payment period approved by the competent tax authorities. Taxpayers with a tax payment period of 1 month shall file tax returns within 10 days from the expiration date; A taxpayer who takes 1, 3, 5, 10 or 15 as a tax payment period shall pay the tax in advance within 5 days from the expiration date, and report and settle the tax payable last month from 1 to 10 the following month.

Fixed enterprises of value-added tax declare and pay taxes to the tax authorities where the institution is located, non-fixed enterprises of value-added tax declare and pay taxes to the tax authorities where the goods are sold, and importers or their agents declare and pay taxes to the customs where the goods are declared.

Seven. Preferential policies of value-added tax

1. Self-produced primary agricultural products sold by agricultural producers;

2. Contraceptive drugs and devices;

3. Old books;

4 imported instruments and equipment directly used for scientific research, scientific experiments and teaching;

5. Imported materials and equipment provided free of charge by foreign governments and international organizations;

6. Equipment imported for processing, assembly and compensation trade;

7. Disabled persons' organizations directly import articles for the disabled;

8. Goods for sale and personal use (excluding yachts, motorcycles and cars subject to consumption tax).

Edit the scope of VAT collection in this paragraph.

The scope of VAT taxation includes: selling and importing goods, and providing processing, repair and replacement services. Goods here refer to tangible movable property, including electricity, heat and gas. , excluding real estate. Processing refers to the entrusted processing of goods, that is, the entrusting party provides raw materials and main materials, and the entrusted party manufactures goods according to the requirements of the entrusting party and collects processing fees; Repair and repair refers to the business of repairing damaged and invalid goods and restoring them to their original state and function.

▲ In addition, the following eight acts are regarded as selling goods in the Value-added Tax Law, and all of them are subject to value-added tax.

1. Entrust the goods to others for consignment.

2. Selling goods on behalf of others

3. Transferring goods from one place to another (except the same county and city)

4. Use the self-produced or entrusted goods for non-taxable items.

5. Take the goods produced, processed or purchased as investments in other units.

6. Distribute the self-produced, commissioned or purchased goods to shareholders or investors.

7. Use the self-produced entrusted goods for employee welfare or personal consumption.

8. Give the self-produced, commissioned or purchased goods to others free of charge.

In China, the scope of collection of value-added tax and business tax do not overlap with each other, and those who collect value-added tax will no longer collect business tax. However, in actual economic activities, there are two kinds of taxable behaviors, namely, taxpayers run part-time or mixed operations.

A sales behavior involving both VAT taxable goods and business tax taxable services is regarded as mixed sales behavior. For example, taxpayers sell goods and are responsible for transportation. Selling goods belongs to the scope of value-added tax collection, and transportation belongs to the scope of business tax collection. The tax treatment for this is that taxpayers who are mainly engaged in the production, wholesale or retail of goods (that is, taxpayers' annual sales turnover of goods accounts for more than 50% of their total turnover) are regarded as selling goods and no business tax is levied; Other taxpayers who are not engaged in the production, wholesale and retail of goods are regarded as taxable services of business tax, and no value-added tax is levied.

Different from mixed sales behavior, part-time sales behavior means that taxpayers engage in VAT taxable behavior and business tax taxable behavior at the same time, and there is no direct connection and subordinate relationship between them. The tax treatment method for this is to require taxpayers to separate the two accounts and pay taxes separately. If it cannot be accounted for separately or the accounting is inaccurate, value-added tax will be levied on all of them.

Other special taxable scope of value-added tax also includes: physical delivery of commodity futures, pawn sales, production and sales of philatelic products by non-postal departments (postal departments pay business tax on production and sales of philatelic products) and so on.

★ Comparison between mixed sales behavior and non-taxable labor service behavior;

The similarity between mixed sales behavior and non-taxable service behavior is that they include both selling goods and providing non-taxable services. The difference is that the mixed sales behavior emphasizes the mixing of the two in the same sales behavior (the same business), that is, selling goods and providing non-taxable services are closely related (such as selling air conditioners and being responsible for installation), so it is difficult to distinguish between selling goods and providing non-taxable services at the same time; Part-time business behavior emphasizes that there are two types of taxable items of different nature in the business activities of the same taxpayer, which do not occur in the same sales behavior (the same business), that is, the differences occur in the same buyer (customer). Therefore, to judge whether the taxpayer's behavior is a mixed sales behavior or a part-time business behavior, it mainly depends on whether his behavior of selling goods and providing non-taxable services occurs in the same business at the same time (that is, whether his behavior of selling goods and providing non-taxable services serves the same customer at the same time), and if so, it is a mixed sales behavior; If not, it is a part-time behavior. It is precisely because of the different nature of mixed sales behavior and part-time business behavior that their tax payment principles are different. The former is based on the taxpayer's' main business', and all sales income (turnover) is subject to only one tax, or value-added tax and business tax, while the latter is based on accounting, so taxpayers can make separate accounting and accurate calculation, so they are subject to separate taxation (that is, sales activities are subject to value-added tax and non-taxable services are subject to business tax); If it can't be accounted for separately or accurately, value-added tax should also be levied on labor services that are not taxed.

In addition, it should be noted that taxable services and non-taxable services have different connotations in the Provisional Regulations on Value Added Tax and the Provisional Regulations on Business Tax. The connotation of the provisional regulations on value-added tax is different. Taxable services mentioned in the Provisional Regulations on Value-added Tax refer to services that should be subject to value-added tax, that is, processing, repair and replacement services; Non-taxable services refer to seven types of services such as transportation and construction, and business tax should be levied according to the provisions of the provisional regulations on business tax. Taxable services in the Provisional Regulations on Business Tax refer to seven types of business tax taxable services, and non-taxable services refer to two types of VAT taxable services: processing, repair and replacement. Therefore, the mixed sales behavior and taxable service behavior introduced in the VAT law and the business tax law are actually the same provisions made by the Provisional Regulations on VAT and the Provisional Regulations on Business Tax on the same issue from different taxes and different angles.

tax payer

All units and individuals engaged in VAT taxable activities and withholding agents who are not engaged in VAT taxable activities but have the obligation to withhold and remit VAT are VAT taxpayers. Before 1994, foreign-funded enterprises paid consolidated industrial and commercial tax, but they were not VAT taxpayers. However, after State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) issued the Notice on the Collection and Management of Foreign-related Tax Value-added Tax on October 6, 65438 (Guo Shui Fa [1993] 138),

As VAT is subject to the system of tax deduction with special VAT invoices, it requires taxpayers to have a high level of accounting, which requires accurate accounting of output tax, input tax and tax payable. But the reality is that many taxpayers can't meet this requirement, so the Provisional Regulations on Value-added Tax in People's Republic of China (PRC) divides taxpayers into general taxpayers and small-scale taxpayers according to their business scale and sound accounting. The specific criteria are as follows:

Production taxpayers, annual VAT taxable sales of 6,543,800 yuan;

Wholesale, retail and other unproductive taxpayers, the annual taxable sales of value-added tax is 6,543,800 yuan+0.8 million yuan.

Small-scale taxpayer

Small-scale taxpayers are taxpayers whose annual sales do not meet the above standards. In addition, individuals, non-enterprise units and enterprises that do not often engage in VAT taxable activities are also recognized as small-scale taxpayers. Small-scale taxpayers can become ordinary taxpayers after their applications are approved.

Small-scale taxpayers can collect value-added tax in a simple way, and their input tax cannot be deducted.

general taxpayer

In addition, for productive taxpayers, this standard can be relaxed to 300,000 yuan if their accounting is sound, but for non-productive commercial enterprises, no matter whether their accounting is sound or not, they must meet the standard before they can be recognized as ordinary taxpayers. Since the addition of 1999, the state has forced the promotion of tax-controlled tankers and prohibited the production and sale of non-tax-controlled tankers. Therefore, on February 3, 2002, State Taxation Administration of The People's Republic of China issued Guoshuihan [20065438+0] No.882 "Notice on Taxation of All Gas Stations of VAT General Taxpayers", stipulating that from 1,

An enterprise that has been recognized as a general taxpayer will not be disqualified as a general taxpayer even if its taxable sales in a certain year fail to meet the standard if it does not commit the following acts.

Falsely issuing special VAT invoices or stealing, cheating or refusing to pay taxes;

Failing to file tax returns for three consecutive months or six consecutive months without justifiable reasons;

Failing to keep and use special VAT invoices and tax control devices as required, resulting in serious consequences.

For commercial enterprises that have just become general taxpayers (including small-scale taxpayers turning into general taxpayers), it takes a tax counseling period to become a formal general taxpayer, generally not less than 6 months. During the counseling period, the tax authorities will strictly manage, including: limiting the number of special invoices purchased each month, and paying 4% value-added tax to the competent tax authorities in advance according to the sales amount of special invoices purchased and issued last time if oversubscription is required.

After the counseling period reaches 6 months, the tax authorities should conduct a comprehensive review. Those who meet the following conditions at the same time can be recognized as formal general taxpayers.

The tax assessment conclusion is normal.

The interview and field trip results were normal.

It is normal for enterprises to declare and pay taxes.

Enterprises can accurately calculate the input tax and output tax, and correctly obtain and issue legal input tax deduction vouchers such as special invoices.

Where one of the above conditions is not met, the competent tax authorities may extend their tax counseling period or cancel their qualifications as general taxpayers.

Tax rate and collection rate

The basic tax rate and low tax rate are applicable to general taxpayers of value-added tax. The collection rate is applicable to small-scale taxpayers, and the collection rate is also applicable to ordinary taxpayers who sell second-hand goods.

the basic tax rate

The basic tax rate of 17% is applicable to general VAT taxpayers engaged in taxable activities, except for the following low taxes and exemptions. For special commodities such as cigarettes, alcohol and luxury goods, the tax burden is adjusted by adding consumption tax.

Low tax rate

In order to reduce the tax burden of some industries, in addition to the basic tax rate, a low tax rate of 13% is also stipulated. Commodities subject to low tax rates are: agricultural products; Residential heating, air conditioning, hot water, gas, liquefied petroleum gas, natural gas, biogas, coal products; Books, newspapers and magazines; Agricultural film for feed, chemical fertilizer, pesticide and agricultural machinery (excluding agricultural machinery accessories); Mining and dressing products of metallic and nonmetallic minerals and other goods specified by the State Council. Value-added tax The general taxpayer sells or imports the above goods, and the value-added tax is levied at the low tax rate of 13%.

Tax rate

The levy rate is applicable to small-scale taxpayers, among which the levy rate applicable to commercial small-scale taxpayers is 4%; For small-scale industrial taxpayers, the applicable levy rate is 6%, and the input tax shall not be deducted.

According to the Notice of the Ministry of Finance on the Value-added Tax Policy for Second-hand Goods and Used Motor Vehicles (Caishui [2002] No.29), since June 5438+ 10/day, 2002, taxpayers (whether ordinary taxpayers or small-scale taxpayers) have sold second-hand goods, and the value-added tax will be levied at a reduced rate of 4%, and then the value-added tax will be halved. Taxpayers who sell used motor vehicles, motorcycles and yachts for which consumption tax is levied, and the price exceeds the original value, shall be taxed at the rate of 4%, and then the value-added tax shall be levied by half; If the selling price does not exceed the original value, the value-added tax shall be exempted. Sales of used motor vehicles, motorcycles and yachts by used motor vehicle business units shall be taxed at the rate of 4%, and then the value-added tax shall be halved.

For tap water sold by water supply companies, according to the Notice on Value-added Tax Policy of Tap Water Industry issued by State Taxation Administration of The People's Republic of China on May 17, 2002, value-added tax is levied at the rate of 6%, but at the same time, the value-added tax indicated on the special invoice for value-added tax of tap water purchased by water supply companies can be deducted.

According to the Notice on Relevant Issues Concerning the Application of Provisional Regulations on Value-added Tax, Consumption Tax and Business Tax to Foreign-invested Enterprises and Foreign Enterprises (1the State Council Guofa (1994)10 on February 22, 1994), the crude oil and natural gas mined by Chinese-foreign cooperative oil (gas) fields are subject to VAT at a reduced rate of 5%.

Tax reduction or exemption

Article 16 of the Provisional Regulations on Value-added Tax in People's Republic of China (PRC) stipulates that the following eight items shall be exempted from value-added tax:

Agricultural products sold by agricultural producers.

Contraceptive drugs and appliances

ancient book

Imported instruments and equipment directly used for scientific research, scientific experiments and teaching.

Imported materials and equipment with free assistance from foreign governments and international organizations.

Processing, assembling and compensation trade imported equipment.

Articles for the disabled are directly imported by disabled organizations.

Goods sold and used by oneself.

In addition, those who fail to reach the threshold will also be exempted from VAT. The right to reduce VAT is in the State Council, and no region or department has the right to reduce VAT. However, the provincial tax bureaus can determine the applicable threshold according to the local actual situation within the prescribed scope.

In addition to the above-mentioned statutory tax exemption, with the approval of the State Council, the Ministry of Finance, State Taxation Administration of The People's Republic of China and other ministries have successively issued documents stipulating some new relief items, including:

Value-added tax is not levied on infrastructure units and processing plants and workshops affiliated to enterprises engaged in construction and installation business, as well as prefabricated components manufactured on the construction site, which are directly used in the construction projects of their own units or enterprises.

The business of selling master films, video tapes and audio tapes due to the transfer of copyright, and the business of selling computer software due to the transfer of proprietary rights of patented technology and non-patented technology are not subject to VAT.

If the copyright and ownership of computer software products registered by the National Copyright Administration are transferred at the time of sale, business tax will be levied, and value-added tax will not be levied.

The supply or exploitation of unprocessed natural water, such as reservoirs for agricultural irrigation and factories using groundwater for production, is not subject to VAT.

No value-added tax is levied on the income of the telecommunication department and its subordinate telephone directory companies from selling telephone directory business.

Military materials sold to the army and military police are exempt from value-added tax.

Steel, timber, cement, boilers and other goods. Production by enterprises affiliated to the military and armed police system, allocation or sales within the system, shall be exempted from value-added tax.

Special equipment, instruments and their parts imported by the army, armed police and military system units with the approval of the General Logistics Department and the Commission of Science, Technology and Industry for National Defense shall be exempted from import value-added tax.

Police dogs imported by armed police and public security departments are exempt from import value-added tax.

Prohibited items are exempt from VAT.

Processing, repair and replacement services provided by the disabled are exempt from value-added tax.

Special imported goods for the disabled are exempt from import value-added tax.

Building materials produced by waste residue are exempt from VAT.

Imported scientific research and teaching books and periodicals sold by China Book Import and Export Corporation to scientific research institutions and institutions of higher learning are exempt from value-added tax.

Rural power grid maintenance fees charged by rural power management stations are exempt from value-added tax.

Agricultural means of production such as plastic film, seeds, seedlings, chemical fertilizers, pesticides and agricultural machinery are exempt from value-added tax.

Fertilizers and pesticides imported within the national plan shall be exempted from import value-added tax.

State-owned grain enterprises that undertake the task of purchasing and storage sell grain, while other grain enterprises sell military grain, disaster relief grain, grain for reservoir resettlement and edible vegetable oil reserved by the government, which are exempt from value-added tax.

Blood for clinical use supplied by blood stations to medical institutions is exempt from VAT.

Preparations produced and used by non-profit medical institutions are exempt from value-added tax; For-profit medical institutions are exempt from value-added tax for 3 years.

Gold deposited by the People's Bank of China at the international market price is exempt from value-added tax.

Gold production and sales units sell gold (excluding AU9999, AU9995, AU999 and au 995；; ; Standard gold with specifications of 50g, 100g, 1kg, 3kg, 12.5kg) and gold ore (including associated gold) are exempt from VAT.

The member units of the gold exchange sell standard gold through the gold exchange, and the value-added tax is exempted if there is no physical delivery; For physical delivery, the tax authorities shall issue special invoices for value-added tax according to the actual transaction price, implement the policy of immediate collection and refund of value-added tax, and exempt from urban maintenance and construction tax and education surcharge.

Imported gold (including standard gold) and gold ore (including associated ore) are exempt from import value-added tax.

Diamonds traded in Shanghai Diamond Exchange are exempt from VAT, while diamonds sold in the domestic market are not.

Imported diamonds directly entering the Shanghai Diamond Exchange are not subject to VAT at the import stage.

Grain, edible vegetable oil, vegetables, meat, poultry, eggs, condiments and canteen tableware provided by university logistics entities for university teachers and students canteens are exempt from value-added tax.

The export income of university logistics entities providing fast food to other universities shall be exempted from VAT.

Taxable products (excluding consumption tax taxable products) produced by school-run enterprises for teaching and scientific research in our school are exempt from value-added tax.

The State Council approved the establishment of China Cinda, Huarong, Great Wall, Dongfang and other four asset management companies and their branches accepted the bad debts of relevant state-owned banks. Where the borrower pays the principal and interest of the loan with goods, real estate, intangible assets, marketable securities and bills, it shall be exempted from the value-added tax payable by the asset company in selling or transferring the goods, real estate, intangible assets, marketable securities and bills and engaging in financial leasing business with goods and real estate.

The business of repairing freight cars by internal units of the railway system is exempt from value-added tax.

Sales of waste materials purchased by waste materials recycling business units shall be exempted from value-added tax.

Goods purchased in China with free assistance from foreign governments and international organizations are exempt from value-added tax.

Official articles imported from embassies and consulates in China, articles imported by diplomatic representatives for personal use, and articles imported by administrative and technical personnel of embassies and consulates within six months after their arrival shall be exempted from import value-added tax.

The ship repair business of COSCO Group is exempt from VAT.

Sports equipment and special clothing for competitions imported by national professional sports teams or donated or sponsored by international organizations and foreign countries shall be exempted from import value-added tax.

Income from resale of donated goods and transfer of assets by the Organizing Committee of the 29th Olympic Games shall be exempted from VAT.

Imported materials donated by foreign governments and international organizations for the 29th Olympic Games shall be exempted from import value-added tax and customs duties.

Non-trade documents, books, audio-visual and CD-ROMs related to the 29th Olympic Games, which are imported by the IOC, international individual sports organizations and other social organizations by post from abroad and do not flow into the domestic market, are exempted from import value-added tax and customs duties within a reasonable range. Non-trade planning and design schemes such as models, drawings, drawing boards, CD-ROMs of electronic documents, design descriptions and printed copies required for the construction of Olympic venues are exempt from import value-added tax and customs duties.

The equipment imported by general trade for the venue construction of the 29th Olympic Games, the fixed equipment inseparable from the venue facilities and the consumables directly used for the Olympic Games (such as competition balls) are exempted from import value-added tax and customs duties.

The income obtained by the IOC from China related to the 29th Olympic Games, as well as the compensation income and share income paid by the Chinese Olympic Committee to the Organizing Committee according to relevant agreements and contracts, shall be exempted from relevant taxes.

Sleepers and precast cement components processed and produced by the bid-winning processing enterprises in the construction of Qinghai-Tibet Railway are exempt from VAT.

The income from the auction organized by the government or the sale of materials donated by SARS by designated institutions shall be exempted from VAT.

Food, medicines, daily necessities and rescue tools donated by foreign organizations, enterprises and individuals to China are exempt from import value-added tax.

The value-added tax on urea products produced and sold by domestic enterprises was adjusted from 50% after the first levy to temporary exemption from value-added tax.

Commodities with daily value less than RMB 65,438+0,000 imported by border residents in border areas through mutual trade are exempt from import value-added tax.

Self-caught aquatic products and their processed products caught by fishing boats of offshore fishing enterprises on the high seas or in foreign waters are exempted from import value-added tax if they are shipped back to China for sale.

During the Ninth Five-Year Plan period, the imported aircraft (including leased aircraft) of airlines directly under CAAC and local airlines will be temporarily reduced by 6%.

Value-added tax will be levied on coal mine stone, cinder, oil shale, wind power generation and electricity produced by some new wall materials listed by the state by half.

The above list is only part of the relief project, not all.

Edit VAT transformation in this section.

The so-called transformation of value-added tax is to transform the current production-oriented value-added tax in China into consumption-oriented value-added tax. Under the current productive value-added tax system, the value-added tax contained in the fixed assets purchased by enterprises is not allowed to be deducted before tax; If the consumption value-added tax is implemented, it means that this part of the tax can be deducted before tax. The vast majority of market economy countries that adopt the value-added tax system in the world implement consumption-oriented value-added tax. Because it is beneficial for enterprises to upgrade their equipment, it is quite popular with enterprises.