Planning For Production And Sale Of Agricultural Products

At present, some leading agricultural enterprises have implemented a one-stop operation mode of agriculture, industry and commerce. Some agricultural production enterprises are also involved in planting and aquaculture industry. The aim is to obtain stable and high-quality raw materials, thereby enhancing market competitiveness.

For some farmers, they are no longer satisfied with simple planting and breeding, but also involved in deep processing of agricultural products, hoping to increase the added value of agricultural products.

But these operators often ignore the impact of Taxation before changing their business models.

In fact, because the state's tax policy stipulates some preferential policies for the production and sale of agricultural products, it is applicable to different modes of operation. For example, the existing tax policy stipulates that agricultural products are exempt from primary agricultural products sold by agricultural producers, and that the general taxpayer's purchase of agricultural products can raise 13% of the input tax.

Therefore, different management modes will lead to differences in tax burden of raw material supply, processing and sales, which provides space for tax planning.

The following is an example.

A certain agricultural and Industrial Corporation is engaged in dairy farming, milk processing and sales, and milk powder production and sales.

The production process is: dairy farms breed dairy cows to produce fresh milk, in addition to direct external sales, but also part of the fresh milk on the milk powder workshop to be processed into milk powder after sale.

Because the sales target is a large trading company, it is necessary to obtain a special invoice for value-added tax, and the general industrial and commercial corporation must be a general taxpayer of value added tax.

In 2001, the agricultural and industrial and commercial company sold and sold 10 million yuan of fresh milk, which was exempt from value-added tax according to the regulations. The sales income of milk powder was 10 million yuan, the value added tax was 1 million 700 thousand yuan, and the milk cost of processing milk powder was 6 million yuan.

Because fresh milk is produced in its own farms, it can not deduct taxes. Therefore, enterprises only deduct 500 thousand yuan for electricity, repair spare parts, fuel and so on. The tax burden should be 1 million 200 thousand yuan, and the tax burden on milk powder is relatively high, reaching 12%.

In 2002, in order to strengthen the management and accounting of farming and processing, the company decided to change its business mode by planning, separate farms and milk powder shops separately, and provide fresh milk from the farms to the public and sell fresh milk to the milk workshop.

In this way, the agricultural industry and commerce company is divided into two independent accounting units, the dairy farm and the milk powder factory.

According to the tax policy, the sale of fresh milk is tax-free agricultural products, which is exempt from VAT. The milk powder factory can purchase 13% of VAT input tax to purchase milk from farms.

In comparison with the financial data in 2001, the milk sold to the milk powder factory costs 6 million yuan plus 20% of the total profit of 7 million 200 thousand yuan.

The milk purchased by the milk powder factory can be added to the value-added tax amount of 936 thousand yuan at the rate of 13% deduction, plus about 200000 yuan of the input tax paid for the purchase of electricity, repair spare parts and fuel. The value added tax shall be about 500000 yuan, which is less than 700 thousand yuan less than the first mode.

In addition, the dairy farm sold 10 million yuan of fresh milk and 7 million 200 thousand yuan of milk sold to the milk powder factory.

The key to this case is to change the unified management mode of the former agricultural and industrial and commercial company, and to separate the two production units, fully enjoying the preferential policies for the exemption of VAT from the sale of primary agricultural products, and making the producers of duty-free agricultural products enjoy the benefits of raising the value added tax.

The same principle can also be applied to the production and sale of farmers.

In the rural area of some Township, some farmers have planted a large number of fast-growing timber in fields and corners. At present, they have entered the logging period.

Some farmers who plan to save money sell the logs directly, while others do not sell the logs cheaply, and do their own deep processing of logs, such as processing logs into thin sheets, packing boxes, and so on.

As a result, the farmers who made deep processing eventually gained less benefit than those who sold logs. Why?

It was only after consulting the registered tax collector that the village cadres came to understand.

Originally, the sale of logs was a tax-free agricultural product by the farmers. After the acquisition of the VAT general taxpayer, it could deduct 13% of the tax.

If the farmer sells 100 yuan logs, he can get 100 yuan income.

The value added tax general taxpayer purchases 100 yuan logs to be able to deduct 13 yuan tax, raw material cost is only 87 yuan.

And the products processed by farmers are 100 yuan, and electricity consumption is 10 yuan, and the value added is 10 yuan. After processing, the value is 120 yuan, and then sold to factories.

Therefore, the general taxpayer of value-added tax can only buy a price under such circumstances, so that the income of farmers is only 97 yuan.

On the other hand, the agricultural products after deep processing are no longer tax-free products, and farmers have to add value added tax and income tax.

In this way, the final income of deep-processing farmers is only 87 yuan.

Under such circumstances, farmers' deep processing of agricultural products is a failure. There are both factors that can not enjoy tax preferences and the low value-added rate.

Is there any way to avoid this?

There are two ways for the tax collector: the first is to set up a processing enterprise by the peasant household and apply for the general taxpayer of value-added tax.

In view of the actual situation at present, the conditions for farmers to set up factories are not ripe. Another way can be adopted, that is, coming from villages, connecting with factories in towns, selling logs by farmers, and hiring farmers after purchasing logs.

By changing the way of processing, farmers can earn 100 yuan for logs sold for 100 yuan, and only 10 yuan for processing factories.

In this way, farmers can earn 110 yuan, 23 yuan more than farmers' self processing, and enterprises can also deduct 13 yuan tax, so that the cost can be reduced.

We should pay attention to two points when we operate in accordance with the above thinking: first, there is a relationship between primary agricultural production units and deep-processing enterprises (non-agricultural products). Agricultural production enterprises must sell products according to the normal selling price between independent enterprises, and we can not simply increase the selling price to increase factory input tax.

Two, according to the difference between agricultural products and non-agricultural products, reasonable arrangement of acquisition and processing links.

To be a good judge