Shanghai’s New VAT Rule & How It Can Benefit Your Business

Shanghai’s New VAT Rule & How It Can Benefit Your Business

In the recent State Council's introduction of a number of inclusive tax cuts for small and micro enterprises, the tax exemption for small-scale VAT taxpayers has been raised from monthly sales of 30,000 yuan to 100,000 yuan, benefiting hundreds of thousands of small businesses in Shanghai.
在最近国务院推出一批针对小微企业的普惠性减税措施中,将增值税小规模纳税人免税标准由月销售额3万元提高到10万元惠及了上海全市数十万户小微企业。

These include: the small-scale value-added taxpayer’s VAT threshold raised from monthly sales of 30,000 yuan to 100,000 yuan; the annual taxable income of small-scale and low-profit enterprises is not more than 1 million yuan, 1 million yuan to 3 million yuan. The part is reduced to 25% and 50% respectively, and the taxable income is reduced to 5% and 10%.
其中包括:小规模增值税纳税人的增值税起征点从月销售额3万元提高至10万元;对小型微利企业年应纳税所得额不超过100万元、100万元到300万元的部分,分别减按25%、50%计入应纳税所得额,使税负降至5%和10%。

Among the small-scale taxpayers with monthly sales of more than 30,000 and less than 100,000, some companies with small start-ups or small business volume, because they have not applied for VAT invoices, will go to the tax authorities to invoice when there is demand.
月销售额超过3万不足10万的小规模纳税人中,有一部分初创或业务量较小的企业,由于未申请增值税发票,在有需求时会到税务部门代开发票。

01

Company A is a city company. It is a small-scale taxpayer with a monthly tax-included sale of 80,000. The company has no other costs. According to the previous tax policy, Company A is required to pay VAT (96/1.03)*3%=28,000 per year, urban construction tax=28,000*7%≈2,000, education surcharge and local education surtax, income tax (96- 2.8-0.2)*10%=93,000, TOTAL TAX PAYMENT 2.80+0.20+9.30=123,000
A公司为城区公司,是小规模纳税人,每月含税销售额为8万,公司无其他成本。根据之前的税收政策,A公司每年需要缴纳增值税(96/1.03)*3%=2.80万,城建税=2.80万*7%≈0.20万,教育费附加及地方教育附加免除,所得税(96-2.8-0.2)*10%=9.3万,共计交税2.80+0.20+9.30=12.30万

After tax reduction: the monthly sales volume below the VAT threshold is exempt from VAT. At the same time, urban construction tax and education surcharge and local education surcharge are exempted. Only income tax is required for the whole year=96*5%=48,000
减税后:每月销售额未达增值税起征点免征增值税,同时免征城建税和教育费附加及地方教育费附加,全年仅需缴纳所得税=96*5%=4.8万

02

The VAT threshold is raised to monthly sales of 100,000. Continue to pay a small value-added taxpayer with a monthly sale of 20,000 yuan (including the number) to 30,000 yuan, exempt from value-added tax. This time, the New Deal will be renewed in a short period of time, and the preferential efforts will be greatly enhanced, indicating that the state has increased the support for small and micro enterprises. If it is a quarterly declaration, 300,000 sales in a quarter are exempt from VAT, and can be exempted for 1.2 million a year.
增值税起征点提高到月销售额10万。继续对月销售额2万元(含本数)至3万元的增值税小规模纳税人,免征增值税。本次短时间再出新政,大幅度提高优惠力度,说明国家对小微企业支持力度加码。如果是季度申报,一个季度30万销售额均免征增值税,一年可以免征120万

However, this practice may not be as great as it sounds. Except for some businesses that cannot be deducted (such as passenger transportation services, loan services, catering services, daily residents' services, entertainment services, etc.), most customers will request special VAT invoices. Small - scale taxpayer needs to be issued by oneself or on behalf of 3% tax rate special ticket.
不过这实操上应该并没有那么美好,除了部分进项不得抵扣的业务(如旅客运输服务、贷款服务、餐饮服务、居民日常服务、娱乐服务等),大多数客户都会要求开具增值税专用发票,小规模纳税人则需要自开或代开3%税率专票。

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