According to the spirit of the two sessions of the CPC Central Committee in 2019 and the latest national tax policy, our company will implement the latest national adjustment of value-added tax rate for valve manufacturing industry from April 1, 2019, that is, from the current tax rate of 16% to 13%. This is a major benefit to the enterprise, but it also makes many users need to reduce the product price by 3 points! Because our company makes the following analysis and explanation!

 

First of all, the national tax rate reduction does not reduce the sales price by the same percentage. The so-called value-added tax, as the name suggests, refers to the extra price tax on the value-added part of the enterprise, and the value-added rate of the enterprise will not be 100%. Most of the costs of the valve industry come from the procurement costs of castings and spare parts. Similarly, since April 1, our upstream enterprises have also provided 13% VAT invoices, so there is no contract price compensation or price reduction policy in any form. Therefore, from the perspective of pure tax reduction, the space for tax reduction of each enterprise depends on the value-added rate of the enterprise and the tax reduction transfer of upstream enterprises.

 

If the VAT rate decreases by 3% and the customer requires the price of goods to be reduced by 3%, this is unreasonable. Here we should explain that our usual sales price is the total amount of price and tax, the VAT rate is 16%, the price excluding tax of goods is 100 yuan, and the tax amount is 16 yuan, then the overall sales price is 116 yuan, and the VAT is turnover tax, It is calculated by subtracting the input tax from the output tax of VAT. If the VAT is reduced from 16% to 13%, the gross profit margin is 1%, and the customer takes 100000 yuan a month:

Get: tax reduction amount: 160-130 = 30 yuan! The tax reduction is only 30 yuan for the loan of 100000, not 100000 × 3% of 3000 yuan.

 

Therefore, the VAT rate is changed to 13%, which reduces the tax rate, not the reduction of commodity prices. The two have nothing to do! All prices are subject to our immediate quotation and contract price.

 

The purpose of the national tax reduction policy is to reduce the burden on enterprises, stimulate market vitality, enhance market vitality, and let every enterprise enjoy dividends. We will attach great importance to the adjustment of value-added tax rate, and actively make preparations before implementation, as well as financial docking and tax learning in the process of implementation, so as to ensure the smooth and orderly adjustment of value-added tax rate. With the purpose of common development and win-win cooperation with all companies, we hope that the above VAT implementation arrangements will be understood and supported by each other.