On March 28, the executive meeting of the State Council confirmed that since May 1, 2018, the three VAT reform measures will be deepened.
1. The VAT rate of the manufacturing industry and other industries will be reduced from 17% to 16%, and the value-added tax rate for goods such as transportation, construction, basic telecommunication services and agricultural products will be reduced from 11% to 10%.
Second, the annual sales standards for small-scale taxpayers in industrial enterprises and commercial enterprises will be raised from 500,000 yuan and 800,000 yuan to 5 million yuan. And within a certain period of time, businesses that have registered as general taxpayers are allowed to register as small-scale taxpayers, so that more enterprises can enjoy preferential taxation at lower rates.
Third, equipment manufacturing and other advanced manufacturing industries, research and development and other modern service industries meet the conditions of enterprises and power grid companies in a certain period of time has not been deducted from the input tax amount shall be one-time refund.
The implementation of the above three measures will reduce the tax burden of market entities by more than 400 billion yuan throughout the year, and domestic and foreign-funded enterprises will all benefit equally.
It is understood that at present, China's VAT rates are 17%, 11%, and 6%. The 17% tax rate mainly includes the sales of goods, processing and repairs and repairs, and manufacturing VAT tax rates. Basically covered in this grade range.
VAT tax cuts will directly benefit manufacturing companies, especially high-end manufacturing and technology innovation companies. As a big manufacturing country, China’s secondary industry still occupies a large proportion. Under the background of the disappearance of demographic dividends and industrial upgrading, high-end manufacturing with core efficiency improvements has become an important force for the upgrading of China’s manufacturing industry.
With the declining domestic macroeconomic situation and the requirements for upgrading the ceramic industry, the ceramics industry has also faced a series of difficulties in recent years. Among them, the most obvious are overcapacity and pressure from environmental supervision. The advancement of ceramics manufacturing towards intelligentization has become a development trend of building ceramics enterprises.
Therefore, environmental protection, intelligence, and green manufacturing have become the focus of transformation and upgrading of the ceramic industry in recent years. The tax incentives for the VAT reform of equipment manufacturing have also further promoted the development of this industry.
In addition, in the list of big taxpayers, the contribution of manufacturing companies still dominates. In areas where the ceramic manufacturing industry is relatively concentrated, there is no shortage of enterprises that pay taxes exceeding 100 million yuan. Every year, the government also returns some taxes and fees as bonuses for big taxpayers. Ceramic companies can also apply for smart technology to apply for innovative technology companies, but they can also get some tax deductions.