Value Added Tax Reform In The Year Of Production And Service Industry

With producer services

In fact, since the implementation of the tax sharing system in 1994, China's value-added tax has not been "full coverage" for the industry.

China has formally collected value-added tax in the production, wholesale, retail and import sectors, as well as processing and repair links, but the construction, installation, pportation and other producer services have not been included in the value-added tax collection.

Therefore, expanding the scope of value-added tax collection and bringing more industry enterprises into the scope of value-added tax collection has become the focus of attention of the industry.

"The value-added tax in real sense should be covered by the whole industry. Taxation on value-added links should be taxed, value-added not taxed, and not taxed through turnover, in order to improve the tax system and achieve a fair tax burden."

The tax deduction policy mentioned by Zhang Bin, director of the tax office of the finance and Trade Institute of the Chinese Academy of Social Sciences, means that in the process of VAT paying taxes, some of the fixed assets purchased by enterprises are allowed to be deducted from sales, and the tax burden of enterprises is reduced a lot, which is more reasonable.

Before the implementation of the value-added tax, pportation enterprises belonging to the third industry have larger fixed assets, but they can not deduct the goods when purchasing goods because they are not in the scope of value-added tax collection.

"If the value-added tax is expanded and the production service industry is included in the scope of value-added tax, enterprises can enjoy the value added tax deduction policy. After reform, although not every enterprise will benefit, it can play a supporting role in the development of the industry as a whole."

Zhang Bin analysis shows.