New VAT to be implemented on April 1

    Recently, the General Administration of Customs of the General Administration of Taxation of the Ministry of Finance issued a notice on deepening VAT reform. As of April 1, when VAT taxpayers conduct VAT taxable sales or import goods, the original 16% tax rate shall be applied, and the tax rate shall be adjusted to 13%. Where the original 10% tax rate is applicable, the tax rate shall be adjusted to 9%. The deduction rate of 10% for taxpayers purchasing agricultural products was adjusted to 9%. When purchasing agricultural products for the production or commissioned processing of goods with a 13% tax rate, the input tax shall be calculated at a 10% deduction rate. The original 16% tax rate and 16% export rebate rate were applied to export goods and services, and the export rebate rate was adjusted to 13%. The original 10% tax rate and 10% export rebate rate were applied to export goods and cross-border taxable acts. The export rebate rate was adjusted to 9%.

    The reduction of VAT tax rate makes enterprises reduce the amount of tax payable and the additional tax reduced accordingly. With the landing of a series of preferential policies, enterprises can better reduce their burdens.