The VAT rate on agricultural products and natural gas was reduced from 13 percent to 11 percent. The original deduction for agricultural products purchased by deep-processing enterprises will remain unchanged, so as to avoid increasing the tax burden due to the reduction of input credits. The tax rate on the sale or import of the following goods will be reduced from 13% to 11%. Sales in the grain and oil distribution chain issued VAT invoices at a rate of 9% deduction rate to calculate input tax.
VAT collection usually includes all aspects of the production, distribution or consumption process, and is a neutral tax based on the value-added amount or price difference, theoretically including the various industrial areas of agriculture (planting, forestry and animal husbandry), the mining industry, manufacturing, construction, transportation and commercial services, etc., or according to the procurement of raw materials, production and manufacturing, wholesaling, and retailing and consumption of various segments.
VAT is a kind of turnover tax which is levied on the basis of value-added amount of commodities (including taxable services) generated in the process of turnover. In terms of the principle of tax calculation, VAT is a kind of turnover tax levied on the new value added or the added value of commodities in multiple stages of commodity production, circulation and labor services. It is an out-of-the-money tax, that is, it is borne by the consumer, and it is levied only when there is value added, but not when there is no value added.
Legal basis
The People's Republic of China **** and the State Provisional Regulations on Value-added Tax, Article 2, Value-added Tax Rate: (a) Taxpayers selling goods, services, tangible movable assets leasing services or imported goods, except for the provisions of the second item of this article, the fourth item and the fifth item, the tax rate is 17%. (ii) The tax rate for a taxpayer's sales of transportation, postal services, basic telecommunications, construction, real estate leasing services, sales of real estate, transfer of land use rights, sales or imports of the following goods shall be 11%: 1. Agricultural products such as grains, edible vegetable oils, edible salts; 2. Tap water, heating, cold and hot water, gas, liquefied petroleum gas, natural gas, dimethyl ether, biogas, coal products for residential use; 3. Books Newspapers, magazines, audio-visual products, electronic publications; 4. Feed, fertilizers, pesticides, agricultural machinery, agricultural film; 5. Other goods specified by the State Council.