What Is a Fixed Tax?

The value-added tax rate is the ratio of the value-added tax to the sales of goods or taxable services. It is a measure for calculating the value-added tax of goods or taxable services. China's current value-added tax is a proportional tax rate, which is divided into 13%, 9%, 6% and 3% and 5% and 3% respectively according to taxable behavior.

VAT rate

After the counseling period reaches 6 months, the tax authority should conduct a comprehensive review. If it meets the following conditions at the same time, it can be regarded as a formal general taxpayer.

Tax method

The basic tax rate is 16%;

After deduction, it is basically maintained at about 3%.

According to the basic principles for determining the value-added tax rate, China's value-added tax has set a basic tax rate and a low tax rate. In addition, there is a zero tax rate for export goods.

(One)

From May 1, 2018, the State Council has reduced the value-added tax rate for manufacturing and other industries from 17% to 16%, and reduced the value-added tax rate for goods such as transportation, construction, basic telecommunications services and agricultural products from 11%. 10%. ^[4]

According to the "Announcement on Deepening the Value-added Tax Reform Policies" (hereinafter referred to as the "Announcement") implemented on April 1, 2019. For general VAT taxpayers who engage in VAT taxable sales or import of goods, the original tax rate of 16% will be adjusted to 13%; the original tax rate of 10% will be adjusted to 9%.

Starting from April 1, 2019, China will reduce the value-added tax rate of imported goods, which will reduce the value-added tax burden of import companies by about 225 billion yuan and the consumer tax burden by 1.35 billion yuan, further stimulating market vitality ^{[ 1]} .