What Changes Will Be Brought To The Textile And Garment Market By VAT?

Since May 1st this year, the reform of business tax to VAT reform has been carried out across the country. The taxpayers of the construction industry, real estate industry, financial industry and life service industry who pay the business tax have been changed to pay VAT.

For a large number of our country

major

And in the market, what changes will the implementation of this tax policy bring to their production and operation?

The effect of real estate tax reduction is obvious.

In Humen, Dongguan, Guangdong, the topic of "camp to increase" has been noticed by many markets and merchants before implementation.

Humen town has gathered dozens of professional markets such as Fumin fashion city, Fumin clothing business center, fuming cloth market, rich people shoe industry, leather goods city, rich people's small commodity underwear market, rich people 100 shopping malls and so on. There is no doubt that the implementation of the camp will involve a large number of specialized markets, businesses and businesses.

According to the relevant person in charge of the State Taxation Department of Dongguan, as early as March and April, Humen began training and exchanging knowledge for the specialized market and the merchants in the market.

For most enterprises, the tax burden brought by VAT will be much lower than the previous business tax after the implementation of the business pformation.

In fact, tax reduction is a positive fiscal policy. The tax reduction implemented by the camp is not only large and wide, but essentially a structural tax cut.

From the macro level, for the traditional wholesale market, the implementation of the business pformation has alleviated the problem of ununiform taxation and duplication of taxes on goods and services from the system, and opened up a deduction chain between the service industry and the second and third industries, which lightened the tax burden of enterprises and stimulated the vitality of enterprises.

For a large number of professional market players and businesses in Humen, the enterprises and businesses can add real estate through outsourcing, leasing and self inspection after the pilot of the business pformation is increased. The VAT can be included in the deduction scope. Meanwhile, the total tax burden of the former pilot tax payer will also drop.

For example, the purchase value of 1 million yuan, material cost 400 thousand yuan shop, before the camp to increase the need to pay 5% of the business tax and 17% value added tax, the actual tax total of 108 thousand and 100 yuan, and after the increase, sales tax entry tax are added value tax algorithm, the actual tax will be reduced by 67 thousand and 200 yuan.

According to the rough statistics of relevant departments, after the camp is changed to increase, the average tax reduction rate for small taxpayers will be more than 40%. For general taxpayers, the tax burden of more than 90% will be reduced, and for the general taxpayers of the original value-added tax in the non pilot areas, the tax reduction effect will also be achieved.

From the nationwide professional market, for the newly built or upgraded market, the tax reduction effect of battalion increase has obvious effect in fixed assets investment such as market construction and pformation.

But for small and micro businesses or small taxpayers, how much benefit can it bring to merchants?

Different ways of tax payment are difficult to unite.

Although the change of camp to the macro level can really reduce the tax burden of the market and enterprises, but for many small and micro businesses, their response is not strong.

"At the present time, the implementation of the business pformation has not produced a particularly significant change in the operation of the merchants in the clothing market, because most of the merchants in the market are individual businesses, and the scale of operation is not large. Business and market are settled by rents, and the account pactions between the upstream and downstream businesses of the merchants are not up to the standard of the general taxpayers.

A person in charge of a clothing market in Muxiyuan, Beijing, said, "before many small businesses pay taxes are fixed, after the adoption of value-added tax, not necessarily all businesses will be reduced in the amount of tax, after all, many small business activities are difficult to achieve all standardized operation."

In the view of the person in charge, the gradual implementation of the standardized tax payment system among businesses is the basis for everyone to benefit from the camp.

In this regard, the head of the tax department of a professional market also said that although the tax payment method and the tax standard of the professional market are not completely unified at present, the actual tax payment is not in sync with the taxpayer's operation status, but the standardized operation of the tax payment is the general trend. The original non-standard way of paying taxes will be gradually regularized. This is not only the specific requirement of the relevant policies and regulations, but also the standard operation of the enterprises.

For enterprises with a certain scale of operation in the market, the "general taxpayer" status makes the tax reduction effect of this camp increase instead of very prominent.

"Our company is a general taxpayer, and the implementation of this policy is likely to reduce the amount of tax payable between us and the cooperative enterprises, but for the time being, there is no obvious effect."

"If our business area and scale have a big expansion, maybe the camp change can bring some favorable tax revenue," said a person in charge of a garment enterprise in Liaoning, China.

In this regard, the relevant tax authorities said that although ordinary individual businesses are not benefiting very much in the current phase of the camp reform and upgrading, the tax reduction effect of fixed assets investment and interest on bank credit will gradually become apparent with the development of the construction industry, real estate industry, financial industry and life service industry.

In addition, there are professionals who believe that for the businesses and enterprises in the specialized market, although the textile and garment industry itself is a value-added tax payment industry, it does not belong to the scope of this camp. However, the current round of camp changes will increase the real estate investment into the deduction comprehensively, which has a clear effect of reducing investment costs.

It is predicted that the implementation of the tax increase will be mainly reflected in two aspects: first, the new real estate will deduct the input tax in two years, which will directly reduce the value added tax paid by the company and improve the cash flow of 60%+40% company.

Secondly, after the conversion of business tax into value-added tax, the amount of tax base purchased by the company is reduced, which can reduce depreciation and increase net profit.

However, some professionals believe that the majority of small and medium enterprises in the professional market will be more suitable for small-scale taxpayer status.

If the taxable service income does not reach 5 million yuan, the enterprise can choose the identity of the small scale taxpayer, choose simple expropriation, pay according to the 3% of the income, so that it does not need to manage the entry, and use manpower and material resources in the business expansion.

It is worth noting that a small taxpayer can not be turned back to a small taxpayer after a small taxpayer has been turned into a general taxpayer, so the pformation of the status of taxpayers should be considered carefully.