- Apr 21, 2018 -
On March 28, the State Council executive meeting decided that from May 1, the value-added tax rate of the manufacturing industry and other industries will fall from 17% to 16%. Value-added tax for transportation, construction, basic telecommunication services and other goods and agricultural products, etc. The tax rate will be reduced from 11% to 10%. On April 4, the Ministry of Finance and the State Administration of Taxation issued the “Circular on Adjusting the Value-added Tax Rate”, which stipulates that since May 1st, taxpayers will be responsible for VAT taxable sales or imported goods, which originally applied to 17% and 11% respectively. For tax rates, the tax rate is adjusted to 16% and 10% respectively. If the taxpayer purchases agricultural products, the 11% deduction rate shall apply, and the deduction rate shall be adjusted to 10%. The taxpayer purchases agricultural products that are used for production, sales, or consignment processing 16% tax rate goods, and calculate the input tax amount according to the deduction rate of 12%. In addition, the annual sales standard for small-scale taxpayers in industry and commerce has been uniformly raised to 5 million yuan, and some input taxes that have not been deducted within a certain period of time have been refunded for some advanced manufacturing industries, modern service industry companies, and power grid companies.