What Is Gross Value Added?

Value added refers to the added value created by the production process of resident units. It can be calculated on the production method or the income method. Calculated according to the production method, it is equal to total output minus intermediate inputs. Calculated according to the income method, it is equal to the sum of labor compensation, net production tax, fixed asset depreciation and operating surplus.

Value Added

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Added value means

(English: value added)

Value Added:

It reflects the value of the output in the production process of the enterprise exceeding the intermediate input in the process. According to the relevant provisions of the National Bureau of Statistics, the value added is calculated by the income method. .

Labor remuneration: refers to the total remuneration received by laborers for providing services to the enterprise. It mainly includes the salary (salary) income, employee benefits, social insurance, public welfare, and other various expenses that are included in and expensed in the current year.

Depreciation of fixed assets: refers to the depreciation of fixed assets withdrawn by the enterprise in the current year.

Net production tax refers to the net amount of various taxes, surcharges, and fees levied by the state on production, sales of products, and production and operation activities, net of production subsidies. The deductions mainly include: production subsidies such as the government's fiscal loss subsidies to enterprises, price subsidies, and export tax rebates for foreign trade enterprises.

Operating surplus: refers to the balance of total output minus intermediate inputs, labor compensation, net production tax, and depreciation of fixed assets.