State Administration Of Taxation Intends To Reduce Value-Added Tax Of Agricultural Products Processing Enterprises

The State Administration of taxation is going to pilot the deduction of the value-added tax input tax for agricultural products (16.91,0.01,0.06%) in some industries, the rate of tax deduction for unified input tax and the rate of output tax collection. This will greatly reduce the value-added tax burden of agricultural products processing enterprises.

Trial agricultural products in some industries Value added tax In the announcement of the approved administrative measures for deduction of input tax (Draft), the State Administration of Taxation clearly stated that the approved deduction method of input tax should be the first to pilot in the liquid milk and dairy products manufacturing and edible vegetable oil processing industry. At the same time, the deduction rate of agricultural product input tax was revised from the current 13% to the applicable tax rate for goods sold at the time of resale, that is, the rate of deduction for the goods sold by taxpayers is 13%, and the deduction rate is 13%. The rate of deduction for the goods sold by taxpayers is 17%. The deduction rate is 17%.

The deduction of input tax is a major feature of VAT. The value added tax payable by enterprises is actually part of the deduction of the output tax minus the input tax. The sales tax is the tax payable when goods are sold, and the input tax is the tax that occurs when goods are purchased. However, because the tax rate of output tax and input tax is not uniform, the value-added tax burden of agricultural products processing enterprises is actually higher than that of industrial enterprises.

According to the reporter, at present, China's primary processing enterprises of agricultural products are mainly Raw material Generally speaking, the purchase tax is deducted from the deduction rate of 13%, but the sales tax is levied at 17% value-added tax when the products are sold. The "high tax and low deduction" makes the agricultural products processing enterprises bear more than 4 percentage points of the value-added tax burden, while the ordinary industrial enterprises are 17% deducted from 17%, which is obviously unfair to the agricultural products processing enterprises. To this end, people in the agricultural sector have been calling for a unified tax rate.

The draft pointed out that the adjustment of the tax deduction rate to the applicable tax rate of finished products can greatly reduce the burden of value-added tax on agricultural products processing enterprises, encourage the value-added processing of agricultural products, enhance the international competitiveness, and promote the development of the processing industry of agricultural products.

Although the draft did not specify the specific time for the pilot, according to the reporter's understanding, after the pilot of the two industries of liquid milk and dairy products manufacturing and edible vegetable oil processing, the State Administration of Taxation will gradually push this one out according to the principle of "easy to get ahead and difficult". New policy 。