subject: Talk About Vat Reform Of China's Printing Industry [print this page] Core value-added tax reform is to "production VAT" to "consumption-type VAT." From January 1, 2009 onwards, in all parts of the country, the implementation of VAT reform for all industries ... ...
HC printing network 1. Value-added tax and reform of the content
VAT is processing the sale of goods or the provision of repairs and replacement services and the acquisition of goods units and individuals on the implementation of a tax levied on value added. Manner in accordance with the deduction of input tax, VAT can be divided into two types: one is only allowed to buy the raw materials contained in the deduction of taxes, does not allow tax deductions contained in the fixed assets purchased. This type of value-added tax called the "production VAT"; the other is all outsourcing projects, including raw materials, including fixed assets are allowed to deduct taxes contained. This type of value-added tax called the "consumption-type VAT."
Core value-added tax reform is to "production VAT" to "consumption-type VAT." From 1 January 2009 onwards, in all parts of the country, all industries to implement VAT reforms. Details are: to allow companies (including foreign) newly purchased equipment contained in the full deduction of VAT. Meanwhile, the removal of import equipment exempt from VAT and foreign-invested enterprises
Purchase VAT refund policy made equipment. Please note that the three points are (1) The VAT reform in the "all parts of the country, all industries, full deduction value-added tax"; under the Customs General Administration of Customs explained that all parts of the country, all industries that the territory of all regions and sectors. Therefore also include foreign-invested enterprises; (2) value-added tax is deductible in full the new purchase of fixed assets (including machinery and equipment) had to get their 17% of the total value-added tax deductible; (3) Why VAT reform to abolish the import of equipment foreign-invested enterprises are exempted from VAT and VAT refund policy made equipment purchases? This is because the VAT deduction has been replaced by the original policy, otherwise overlap each other contradictory.
2. VAT reform on the business of printing
VAT reform in the printing business is definitely good news.
First, the VAT reform will greatly reduce the corporate tax burden.
Before the VAT reform, the domestic printing enterprises to purchase domestic
Printing Equipment VAT is not deductible. VAT reform, the printing business from the printing device manufacturer to purchase printing equipment, printing equipment manufacturers with out VAT invoices can be deducted 17% VAT. If, bought this homemade printing equipment prices of 100 million yuan, the amount you can deduct VAT is 100/1.17X17% = 14.5299 million yuan. Printing companies buy equipment to save nearly equal than 150,000 yuan. Purchase of domestic equipment for small and medium sized main printing companies, this is a lot of numbers. So, will facilitate the printing enterprises to purchase domestic printing equipment. Similarly, the VAT reform will also help to promote the sale of imported equipment, printing equipment, the price of imports than before the significant reduction in the VAT reform. For example, before the reform of the VAT, the value of one million U.S. dollars to buy the off
Four-color offset press , First of all to get their 10% tariff, the price this machine into 1.1 million U.S. dollars; and then get their 17% VAT, the price of the machine becomes 110X117% = 128.7 million. VAT reform, 18.7 million in VAT can be deducted. (Formula: 128.7/1.17X17% = 18.7) has just introduced this year, the provisional tariff rates, to more than four-color off
Offset The import tariff rate from 10% to 7%. Thus, the implementation of provisional tariff rates in accordance with this calculation, the general printing business off the purchase of a four-color
Offset printing Machine prices are 100X1.07X1.17 = 125.19 million. Can offset the VAT amount is 125.19/1.17X0.17 = 18.19 million. Meet the import duty and VAT-free conditions, can still enjoy preferential tariffs and VAT.
Secondly, help to promote domestic and foreign sales of printing equipment.
Introduced this year to the national VAT reform, the implementation of provisional import tariff rates on industrial projects encouraged by the state tax incentives introduced rabbits, significantly reduced the purchase of domestic equipment and the cost of imported printing equipment, this very conducive to domestic and foreign sales of printing equipment.
Same time, the VAT reform will be beneficial to the printing enterprises to expand investment in the initiative. This is conducive to expanding domestic demand, encourage enterprises to increase the enthusiasm of newer technologies and equipment, help to promote technological progress of enterprises, industrial restructuring, transformation of economic growth, improve the economic efficiency of enterprises, and promote healthy and stable development of enterprises. According to statistics, investment and exports on economic growth has a good role in promoting exports of each additional percentage point of economic growth 0.8150 percent; each one percentage point increase in domestic investment, economic growth 0.4994 percentage points. This shows that China's economic growth has significant "capital expansion long form" and "export-oriented" features. Therefore, the current must actively encourage businesses to increase investment, expand exports, stimulating the economy steady and rapid growth of China.
Also help reduce production costs and increase profits. VAT deduction policy is conducive to reducing the depreciation of production equipment, reduce production costs and increase profits. In particular, the current printing business more competitive,
Printing Price
Dropping, and rising raw material prices printing and production costs are constantly rising, the State introduced preferential policies of the printing business out of the predicament is very necessary and very timely.
Talk About Vat Reform Of China's Printing Industry
