VAT tax rate adjustment new deal landing in Yiwu, with about 15 thousand enterprises able to enjoy such “tax reduction”.
Learned from the National Tax Bureau of Yiwu, from May 1st, the two VAT rates of 17% and 11% were reduced by 1 percentage points respectively. Recently, the new policy has come to the ground in Yiwu, which will directly reduce the tax burden on local enterprises and guide enterprises to convert the pricing strategy, ultimately, benefiting the people and consumers.
On the morning of May 2nd, Yu Xu, an accountant of Yiwu Jiaodian Commodity Co., Ltd., issued a new VAT invoice after its adjustment. The total price tax shown on the special invoice is 76879.2 yuan, with a tax rate is 16% and the value added tax 10604.03 yuan. If calculated according to the previous 17% tax rate, her company needs to pay another 600 yuan of tax.
“The reduction of the VAT rate will directly reduce the tax burden of the company and enable the company to have more liquidity to improve its operation. Besides that, the company will also adjust the price of the product in time, so that buyers can buy the same goods with less cost, which equals to give a discount to buyers,” said Yu Xu.
According to the official of National Tax Bureau in Yiwu, value-added tax is a turnover tax, which transfers the tax burden to consumers in the form of transfer. The reduction of VAT will help guide enterprises to formulate new pricing strategies, reduce the sales price of products, and let consumers buy the same products with less cost. Meanwhile, the price reduction strategy will stimulate consumption to a certain extent, and ultimately form a win-win situation for operators and consumers.
Insiders said that the two VAT tax rate cut was related to the real economy, such as manufacturing, trade, transportation, construction and basic telecommunications. Cut the value added tax rate down from 17% to 11% and 16% to 10% respectively, which will reduce the operating cost of the real economy.
According to the statistics of the Yiwu National Tax Bureau, under the influence of this new deal, more than 15 thousand enterprises will enjoy the benefit of “tax reduction”, and then bring new energy into the local real economy.
Posted from my blog with SteemPress : https://www.linkyiwu.com/blog/vat-tax-rate-cut-brings-new-energy-to-the-real-economy-in-yiwu/