Tax reduction, cost reduction. According to estimates, before the tax reform, the hotel industry's comprehensive tax burden of 8-9% (including business tax and surcharges, corporate income tax, etc.)

Through the above calculations, if in accordance with the current "camping" program is expected to reduce the tax burden of the hotel to 5-6%, the range is objective.

Challenge:

1, the supplier link prices may rise.

In general, hotels rarely require suppliers to issue VAT invoices, usually ordinary invoices, after the tax reform hotel will certainly require suppliers to issue VAT invoices, suppliers will reflect this part of the tax in the price, simply put, the price increase.

The input tax credit link is different from the traditional industry, the cost, purchasing link can really deduct a limited proportion.

2, hotel suppliers are bound to face a major reshuffle

First, many suppliers can not provide VAT invoices, had to choose to withdraw. Due to the hotel procurement categories, in order to meet the brand standards and customer needs, the need to purchase from different suppliers, especially the opening of the hotel for a long time, the supplier reaches hundreds of not uncommon. Many suppliers are not qualified to issue VAT invoices. Especially in recent years the rise of online shopping trend, a certain level has become an integral part of the hotel procurement, Taobao online shopping, not to mention VAT invoices, even ordinary invoices are difficult to obtain. However, due to the transparency and safety of online shopping, hotels get the bottom price of quality goods. After the tax reform, perhaps this part of the supplier will be very difficult to work with the hotel again.

Secondly, there will be a group of big branded suppliers with general VAT taxpayer status to replace the previous small suppliers,

but don't forget that the bargaining power of hotels will be further weakened relative to these big suppliers. Plus, VAT is an off-price tax, which suppliers will pass on to hotels, leading directly to higher purchase prices, which is not good for hotels.

Hotels must choose between price and the tax effect of input tax credits, so it is difficult to judge who will really benefit from this tax reform.

3, the hotel industry's traditional business model mode is facing changes.

And so on.