219 Kinds of Vegetable Circulation Link to VAT-free Vegetable Prices Will Decline
The Ministry of Finance issued a notice yesterday that, with the approval of the State Council, since January 1 of this year, VAT on vegetables circulation will be exempted. The vegetables involved include root vegetables, cabbage, cabbage, leafy vegetables, beans, and edible mushrooms. Wait for hundreds of vegetables.
The Ministry of Finance proposed to exempt VAT on vegetables sold by taxpayers engaged in the wholesale and retail of vegetables. Vegetables refer to herbs and woody plants that can be used as non-staple foods, including 219 varieties of vegetables in 14 categories including root vegetables, yam, leeks, cabbages, and leafy vegetables. The vegetables that are processed through the processes of selection, cleaning, cutting, drying, packaging, dehydration, refrigeration, and freezing are exempted. All kinds of canned vegetables do not belong to the scope of exemption.
The notice also stipulates that when taxpayers sell vegetables as well as other VAT taxable goods, they shall account separately for sales of vegetables and other VAT taxable goods. For those that have not been separately accounted for, they are not entitled to the VAT exemption policy for vegetables.
Industry sources pointed out that at present, wholesalers based mainly on farmer households only bear the costs of market management fees and transportation fees, and are exempted from value-added tax. Therefore, in the process of exempting vegetable circulation VAT, the greatest benefit is to distribute vegetables to Large supermarkets, supermarkets, vegetable distribution companies. For a vegetable distribution company with an annual turnover of 10 million yuan, if it is exempted from paying value-added tax, it can save more than 1 million yuan a year.
â– Analysis of a vegetable price short-term hard to fall long-term good
The industry believes that at the moment of high demand for vegetables, vegetable prices will not drop significantly due to the tax exemption policy, but they will be good in the long term.
GF Securities Chief Analyst Ou Yafei believes that the policy will reduce the tax burden on companies engaged in the circulation of agricultural products, encourage enterprises to benefit the people, and play a role in suppressing prices.
A person in charge of a large agricultural product wholesale market in Beijing stated that the long-term effect of the policy on the vegetable market and consumers is good, but the Spring Festival is approaching and vegetables are in demand during the peak season. Vegetable prices will not drop significantly.
Liu Zuo, director of the Taxation Bureau of the State Administration of Taxation, also pointed out that exemption of value-added tax is beneficial to reducing the price of vegetables, but it does not mean that the price of vegetables is reduced to the same degree. He believes that the price of vegetables depends mainly on supply and demand. Recently, due to the holiday and cold weather, the price of vegetables may not fall but it has nothing to do with taxes.
2 Small value-added tax in circulation
Some media said that according to estimates by authoritative departments, the scale of tax cuts for vegetable circulation after the implementation of the policy will reach 15 billion yuan. The rough calculation of GF Securities results in an annual VAT levy of not more than RMB 5 billion for the vegetable circulation industry in China.
Liu Zuo believes that the scale of tax cuts for vegetable circulation is very complicated. First of all, it is difficult to obtain accurate data on the sales of vegetable wholesale and retail links. At the same time, not all vegetable transactions are taxed. There is no value-added tax when farmers sell vegetables to wholesalers, and wholesalers and retailers will only collect tax at the VAT threshold for selling goods during their respective transactions. In fact, VAT in the circulation of vegetables is not a large number.
Liu Zuo pointed out that the vegetables sold in supermarkets are determined to be subject to value-added tax. After the implementation of the policy, all supermarket sales of vegetable VAT will be exempted. "Although the scale of tax cuts is relatively complex, it is judged by common sense. The scale of tax reduction after the implementation of the policy will not be very large."
â– Linking VAT on agricultural product sales is divided into four categories:
â— Self-produced agricultural products sold by agricultural producers are exempt from value-added tax â— Self-employed households that sell agricultural products that do not reach the threshold are exempt from value-added tax â— Value-added tax is generally taxpayers who sell agricultural products (annual sales of agricultural product processing enterprises reach more than 500,000 yuan, and business Annual sales of the company are over 800,000 yuan.) Collected at a tax rate of 13%. â— Small-scale taxpayers selling agricultural products (annual sales of agricultural products processing enterprises reaching 500,000 yuan or less, annual sales of commercial enterprises reaching 800,000 yuan or less) 3% rate
The Ministry of Finance proposed to exempt VAT on vegetables sold by taxpayers engaged in the wholesale and retail of vegetables. Vegetables refer to herbs and woody plants that can be used as non-staple foods, including 219 varieties of vegetables in 14 categories including root vegetables, yam, leeks, cabbages, and leafy vegetables. The vegetables that are processed through the processes of selection, cleaning, cutting, drying, packaging, dehydration, refrigeration, and freezing are exempted. All kinds of canned vegetables do not belong to the scope of exemption.
The notice also stipulates that when taxpayers sell vegetables as well as other VAT taxable goods, they shall account separately for sales of vegetables and other VAT taxable goods. For those that have not been separately accounted for, they are not entitled to the VAT exemption policy for vegetables.
Industry sources pointed out that at present, wholesalers based mainly on farmer households only bear the costs of market management fees and transportation fees, and are exempted from value-added tax. Therefore, in the process of exempting vegetable circulation VAT, the greatest benefit is to distribute vegetables to Large supermarkets, supermarkets, vegetable distribution companies. For a vegetable distribution company with an annual turnover of 10 million yuan, if it is exempted from paying value-added tax, it can save more than 1 million yuan a year.
â– Analysis of a vegetable price short-term hard to fall long-term good
The industry believes that at the moment of high demand for vegetables, vegetable prices will not drop significantly due to the tax exemption policy, but they will be good in the long term.
GF Securities Chief Analyst Ou Yafei believes that the policy will reduce the tax burden on companies engaged in the circulation of agricultural products, encourage enterprises to benefit the people, and play a role in suppressing prices.
A person in charge of a large agricultural product wholesale market in Beijing stated that the long-term effect of the policy on the vegetable market and consumers is good, but the Spring Festival is approaching and vegetables are in demand during the peak season. Vegetable prices will not drop significantly.
Liu Zuo, director of the Taxation Bureau of the State Administration of Taxation, also pointed out that exemption of value-added tax is beneficial to reducing the price of vegetables, but it does not mean that the price of vegetables is reduced to the same degree. He believes that the price of vegetables depends mainly on supply and demand. Recently, due to the holiday and cold weather, the price of vegetables may not fall but it has nothing to do with taxes.
2 Small value-added tax in circulation
Some media said that according to estimates by authoritative departments, the scale of tax cuts for vegetable circulation after the implementation of the policy will reach 15 billion yuan. The rough calculation of GF Securities results in an annual VAT levy of not more than RMB 5 billion for the vegetable circulation industry in China.
Liu Zuo believes that the scale of tax cuts for vegetable circulation is very complicated. First of all, it is difficult to obtain accurate data on the sales of vegetable wholesale and retail links. At the same time, not all vegetable transactions are taxed. There is no value-added tax when farmers sell vegetables to wholesalers, and wholesalers and retailers will only collect tax at the VAT threshold for selling goods during their respective transactions. In fact, VAT in the circulation of vegetables is not a large number.
Liu Zuo pointed out that the vegetables sold in supermarkets are determined to be subject to value-added tax. After the implementation of the policy, all supermarket sales of vegetable VAT will be exempted. "Although the scale of tax cuts is relatively complex, it is judged by common sense. The scale of tax reduction after the implementation of the policy will not be very large."
â– Linking VAT on agricultural product sales is divided into four categories:
â— Self-produced agricultural products sold by agricultural producers are exempt from value-added tax â— Self-employed households that sell agricultural products that do not reach the threshold are exempt from value-added tax â— Value-added tax is generally taxpayers who sell agricultural products (annual sales of agricultural product processing enterprises reach more than 500,000 yuan, and business Annual sales of the company are over 800,000 yuan.) Collected at a tax rate of 13%. â— Small-scale taxpayers selling agricultural products (annual sales of agricultural products processing enterprises reaching 500,000 yuan or less, annual sales of commercial enterprises reaching 800,000 yuan or less) 3% rate
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