With the deepening of mass entrepreneurship and innovation, the national tax and fee reduction policies have been launched one after another, however, many of our enterprises always feel that tax and fee reductions have nothing to do with themselves. That's because the policy is changing and the company is not.
Let's analyze the reasons for this.
Background of the case
In the daily contract signing, the Purchasing Department of China Tax Youcai Group adheres to a normative principle, all procurement business needs invoices, and it is specifically stated in the contract that "the contract purchase amount includes tax, provides formal and effective VAT special invoices, and handles payment settlement", and there are similar clauses in the sales contract that "the contract sales amount includes tax, and formal and effective VAT invoices can be issued".
So, in the context of the reform of the fiscal and taxation system, how to sign the contract to achieve tax savings?
Policy basis
On March 5, 2018, the Prime Minister made an annual work report at the first session of the 13th National People's Congress.
Further reduce the tax burden on enterprises. Reform and improve the value-added tax system, adjust the tax rate level in accordance with the direction of three levels and two levels, focus on reducing the tax rate of manufacturing, transportation and other industries, and increase the annual sales standard of small-scale taxpayers. Significantly expand the scope of small and micro enterprises that enjoy the preferential policy of halving the income tax. Significantly increase the pre-tax deduction ceiling for newly purchased instruments and equipment by enterprises. Implement a comprehensive credit policy for enterprises' overseas income. Expand the scope of preferential tax treatment for warehousing land for logistics enterprises. We will continue to implement preferential policies for enterprise restructuring, such as land appreciation tax and deed tax. Promote the transformation and upgrading of the real economy, and strive to stimulate market vitality and social creativity.
Summary of tax control
Through the analysis of the above cases and related reform policies, it is not conducive to the financial and tax optimization of the enterprise that China Tax Youcai Group signed the contract in this way.
The amount of the sales contract includes tax, due to the reform of the fiscal and taxation system, the tax rate is constantly adjusted, according to the "three grades and two grades" direction to adjust the tax rate level, the current tax rate is % of the three grades, the future will be adjusted to two grades, that is to say, the tax rate will fall, the current invoice tax rate issued to customers is 13%, with the introduction of the tax reduction policy, the VAT rate on the sale of goods in the future will be lower than 13%, therefore, the sales contract amount including tax is beneficial to the sales enterprise, the same amount can be less to calculate the output tax.
Through analysis, we conclude that when the contract is signed, the purchase contract amount should be reflected in the amount excluding tax (i.e., price and tax separation), and the sales amount in the sales contract should be tax-included as much as possible, which is conducive to the realization of tax savings for enterprises.