Taxpayers selling or importing the following goods are subject to VAT at a low rate of 13%:
1. Grain and edible vegetable oil;
2 tap water, heating, air conditioning, hot water, gas, liquefied petroleum gas, natural gas, biogas and coal products for residents;
3. Books, newspapers and magazines;
4, feed, fertilizer, pesticides, agricultural machinery, agricultural film;
5. Other goods specified by the State Council.
At the same time, in 1995, according to the decision of the State Council, the VAT rate of the following goods was also adjusted from 17% to 13%:
1. Agricultural products. Including all kinds of animal and plant primary products produced by planting, breeding, forestry, animal husbandry and breeding, except that agricultural producers sell their own agricultural products;
2. Metal ore mining and mineral processing products. Including ferrous and nonferrous ore mining products;
3. Non-metallic mineral mining and dressing products. Including non-metallic mineral products and coal other than metallic mineral products.
The scope of levying VAT instead of business tax is as follows:
I. Scope of solicitation
The change from business tax to value-added tax mainly involves transportation and some modern service industries;
Transportation includes: land transportation, water transportation, air transportation and pipeline transportation.
Modern service industries include: R&D and technical services, information technology services, cultural and creative services, logistics auxiliary services, tangible movable property leasing services, and judicial expertise consulting services.
Two. Change business tax to value-added tax rate
1. After the reform, the original business tax was changed to value-added tax, and the value-added tax was increased by 6% (modern service industry) and 1 1% (transportation industry).
The change from business tax to value-added tax mainly involves transportation and some modern service industries. Transportation includes land transportation, water transportation, air transportation and pipeline transportation. Modern service industries include: R&D and technical services, information technology services, cultural and creative services, logistics auxiliary services, tangible movable property leasing services, and judicial expertise consulting services.
According to the experience of Shanghai pilot project, the tax burden of enterprises has been reduced after the reform. Business tax is calculated and paid according to the full amount of income. After changing to value-added tax, some costs can be deducted, which can actually reduce the tax burden.
The overall tax burden of the reform pilot industries will not increase or decrease. For industries that currently collect VAT, whether in Shanghai or other regions, the input tax for purchasing taxable services from pilot taxpayers can be deducted, and the tax burden will be reduced accordingly. Among the1.2000 pilot enterprises, for 35000 general taxpayers, due to the introduction of VAT deduction, compared with the full collection of the original business tax, the tax burden will be reduced or even greatly reduced; For 85,000 small-scale taxpayers, after the business tax is changed to value-added tax, the collection rate is 3%, which is 2 percentage points lower than the original business tax rate. There is indeed an increase in the tax burden of individual enterprises in the reform.
2. What is the tax rate after the business tax is changed to value-added tax?
According to the actual tax burden of business tax in the pilot industries, the VAT rate of land transportation, water transportation, air transportation and other transportation industries is basically between 1 1%- 15%, and the modern service industries such as R&D and technical services, information technology, cultural creativity, logistics assistance and forensic consulting services are basically between 6%-/kloc-0. In order to keep the overall tax burden of the pilot industries from increasing, two low tax rates, 1 1% and 6%, are selected for the pilot reform, which are applicable to the transportation industry and some modern service industries respectively.
3. The advertising agency industry belongs to the scope of changing business tax into value-added tax, and the tax rate is 6%.
Advertising service refers to the business activities that use books, newspapers, magazines, radio, television, movies, slides, street signs, posters, windows, neon lights, light boxes, the Internet and other forms to publicize and provide related services for customers' goods, business services, cultural and sports programs or announcements and statements. Including advertising planning, design, production, release, broadcast, publicity and display.
The above are specific industries with the VAT rate of 13%, depending on the regulations of relevant departments.