Replacing Business Tax With Value-Added Tax: Is The Tax Burden On Start-Ups Lighter Or Heavier

2012-08-11   |   by CusiGO


His remarks on micro-blog caused a wave of waves, and many business owners make complaints about it. However, the public opinion is not one-sided. Some people say they pay less taxes, which is very supportive of the policy. Some people say they pay more taxes, swearing. They think that in the environment of increasing business pressure, the government not only does not give support to enterprises, but also blindly increases enterprise taxes, which is really chilling to entrepreneurs and entrepreneurs.

@Li Yuanshan 916: This is a disaster for our R & D enterprises! 5% of the technology trade tax that could have been reduced and reduced has now become 8% of the value-added tax, which is money grabbing! It is to crack down on the R & D service of science and technology! Because the gross profit rate seems to be relatively high on the book of the service of science and technology.

CEO of Orange Hotel @ Wu Hai: it depends on whether your supplier gives you a deductible value-added tax invoice. If most of them are ordinary invoices, you are miserable.

@Xiaoshulin s: for enterprises, the business tax is “dead”. If you have income, you have to pay it in proportion. But value added tax is alive, and enterprises can adjust their finance according to the tax law and their own operation. For example: the original purchase of fixed assets without VAT invoice is not deductible, now you can request to issue VAT invoice to deduct. Wait. If there is more deduction, there will be less tax. If there is less deduction, there will be more tax.

@Zhou Chengjun: I’m afraid that we can’t blame the change of business tax to VAT. This direction is still right. After replacing business tax with value-added tax, some enterprises, especially service enterprises, have increased their tax burden, which may be due to the failure of upstream enterprises to provide value-added tax tickets, or the unreasonable tax rate approved by small-scale taxpayers, etc., which will be gradually improved in the process of reform.

Everyone has different opinions on the important tax reform of “replacing business tax with VAT”. What’s the matter?

Generally speaking, “replacing business tax with value-added tax” means that products and services are included in the scope of value-added tax collection, business tax is no longer levied on “services”, and the tax rate of value-added tax is reduced.

(1) Transportation industry: including land, water, air and pipeline transportation services

(2) . some modern service industries

1. R & D and technical services

2. It services

3. Cultural and creative services (design services, advertising services, conference and exhibition services, etc.)

4. Logistics auxiliary service

5. Tangible personal property leasing services

6. Assurance consulting services

Temporarily excluded industries: construction industry, post and telecommunications industry, finance and insurance industry and life service industry

Taxpayers whose annual sales volume exceeds the standard (5 million) prescribed by the Ministry of Finance and the State Administration of taxation are ordinary taxpayers, and those who do not exceed the standard are small-scale taxpayers.

Shu Ping, manager of the cooperation and Development Department of Beijing Huacai Account Management Consulting Co., Ltd., said in an interview with chuangyeongbang reporter:

For ordinary taxpayers, the tax rates of the reformed tax rates are 17%, 11% and 6% respectively in tangible movable property leasing, transportation and some modern service industries. On the surface, the tax rates are increased. However, the input tax of general taxpayers on the purchase of goods or taxable services can be deducted at the same time, which solves the problem of repeated taxation of business tax before. After the deduction, whether the actual tax paid by the general taxpayer is increased or decreased compared with that before can not be generally determined according to the different situations of each enterprise. In short, if taxpayers pay more input tax and less output tax, the actual tax will be reduced, or even no value-added tax will be paid.

according to

1. The proportion of deductible input tax expenditure in the income obtained. If there are a large number of non deductible input tax expenditure, the tax burden is likely to increase after the reform;

2. In the case of obtaining the deduction voucher, even if the input tax can be deducted, it still depends on whether the legitimate deduction voucher can be obtained from the supplier. If the opposite party fails to provide the corresponding voucher, the tax burden may increase;

3. The situation of suppliers: because business tax payers and small-scale taxpayers cannot issue VAT special invoices, if most of the suppliers are business tax payers or small-scale taxpayers, it may cause difficulties in deduction, thus increasing the tax burden;

4. Customer situation: if most of the customers are VAT taxpayers, the input tax can be deducted from the taxable services purchased by the other party after the reform. Under the condition that the VAT tax burden of the customers is reduced, the business space of the taxpayers can be expanded and the service supply can be increased. On the contrary, it will indirectly reduce the demand for services.

For general taxpayers, planning can be considered from the following aspects:

1. When purchasing goods or services in the future, under the condition of the same price and service quality, we should try our best to choose the merchants who can provide the special VAT invoice, so that we can deduct the tax we should pay. But don’t forget the company’s cost in order to obtain the special VAT invoice. Such a result is not worth the loss.

2. We can consider outsourcing the labor services we undertake to solve the problem of input tax while ensuring the service quality is not reduced.

3. It can be considered to outsource the work of functional departments of the company, such as finance (bookkeeping, tax declaration, etc.), personnel, etc., and provide services by a professional third-party company. It can not only save the company’s labor cost, but also enjoy the benefits of input tax deduction.

Moody’s, one of the three largest rating agencies in the world, said in the Moody’s credit outlook released on the 30th that although the tax revenue in Shanghai has increased due to the replacement of business tax with value-added tax, the Chinese government’s purpose is to improve the tax certainty of enterprises and strengthen the central government’s control over financial resources and policies. This measure can reduce the burden of private enterprises and promote the business activities of small and medium-sized private enterprises.