According to Article 1 of the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Launching the Pilot Project of Changing the Business Tax of Transportation Industry and Some Modern Service Industries to VAT in Shanghai (Caishui [201]1), transportation industry and some modern service industries are provided in People's Republic of China (PRC) (hereinafter referred to as the territory).
Taxpayers providing taxable services shall pay value-added tax in accordance with these measures and no longer pay business tax. Units refer to enterprises, administrative units, institutions, military units, social organizations and other units. Individuals refer to individual industrial and commercial households and other individuals.
Article 8 Taxable services refer to land transport services, water transport services, air transport services, pipeline transport services, research and development and technical services, information technology services, cultural and creative services, logistics auxiliary services, tangible movable property leasing services and judicial consulting services. The specific scope of taxable services shall be implemented in accordance with the Notes on the Scope of Taxable Services attached to these Measures. Article 12 VAT rate: (3) Providing modern service industry services (except tangible movable property leasing services), with the tax rate of 6%.
Article 13 The collection rate of value-added tax is 3%. Cultural and creative services specified in the notes on taxable service scope. Cultural and creative services, including design services, trademark copyright transfer services, intellectual property services, advertising services and conference and exhibition services. Design service refers to the business activities that convey plans, schemes and ideas through visual and written forms. Business tax and value-added tax are two main taxes in China. The promotion of camp reform in the whole country has roughly experienced the following three stages. 20 1 1 With the approval of the State Council, the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China jointly issued the pilot scheme of changing business tax into value-added tax.
Extended data:
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.
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.
References:
Change business tax to value-added tax-Baidu Encyclopedia