The medical net on May 4, 13% of the value-added tax cancelled the document! The tax rate of Chinese medicinal herbs is 11%! 

 

Recently, the ministry of finance and the state administration of taxation announced the notice about Jane and VAT related policies, including agricultural products (including food) and other products sales, import tax rate from 13% to 11%. 

 

In 1995, the ministry of finance and the state administration of taxation on the printing of agricultural product tax comment > < notice (caishui word [1995] no. 52) specified in the first categories of medicinal materials for agricultural products - implied plants of medicinal plants. 

 

The ministry of finance and the state administration of taxation on the adjustment of agricultural products of VAT rates and several projects shall be the VAT notice (caishui word [1994] 004) regulation: "from May 1, 1994, agricultural products of VAT rates changed from 17% to 13%." 

 

This time, after the tax cut, the Chinese medicine that has been calling for tax cuts for many years is also waiting to see if the tax cuts will come. 

 

At present, China's drug tax rate is levied at 17 percent, and the industry has been calling for tax cuts for years. 

 

In 2014, the National People's Congress to Min Chen has said publicly that country since 1994, proprietary Chinese medicine VAT regulations of national industry, to this year has been for more than 20 years, 4% higher than that of the invisible is equivalent to more than a tax, as the quintessence of our country has been affected by the healthy development of Chinese medicine and the fair competition in the market. 

 

The attached: 

 

Notice of the policy on the reduction of the VAT rate 

 

Fiscal tax [2017] 37 

 

Provinces, autonomous regions, municipalities directly under the central government, the municipal finance department of the state council, the state taxation bureau, the local taxation bureau, the finance bureau of the xinjiang production and construction corps: 

 

As of July 1, 2017, the tax structure of the VAT rate will be cut and the VAT rate of 13% will be abolished. The policy advice will be made as follows: 

 

For taxpayers selling or importing the following goods, the tax rate shall be 11% : 

 

Agricultural products (including food), tap water, heating, liquefied petroleum gas, natural gas, edible vegetable oil, air conditioning, hot water, gas, coal/charcoal products for household use, edible salt, agricultural machinery, feed, pesticides, agricultural films, fertilizers, methanol, dimethyl ether, books, newspapers, magazines, audio-visual products and electronic publications. 

 

The specific scope of the above goods is shown in annex 1 of this notice. 

 

The taxpayer shall purchase agricultural products and deduct the input tax in accordance with the following provisions: 

 

(a) in addition to the provisions of section (2), for taxpayers who purchase of agricultural products, obtains the general taxpayers to issue special invoices for value-added tax or customs import VAT payment, with the special invoices for value-added tax or customs import VAT payment indicated the book value shall be the input tax; From according to the simplified tax calculation method to calculate and pay VAT in accordance with the 3% levy rates of small-scale taxpayers get the special invoices for value-added tax, with special invoices for value-added tax on input tax calculated on the amount and the deduction rate of 11%; (open) agricultural products sales invoice or purchase invoices, to produce indicated in sales invoice or purchase invoice input tax calculated on the purchase price of agricultural products and the deduction rate of 11%. 

 

Change during the period of paid VAT pilot, (2) the business tax payers for the production of sales or entrust the agent processing 17% rate of agricultural products to maintain the original goods to deduct the same intensity. 

 

(3) the pilot, we will continue to produce VAT amount shall be deducted for taxpayers who purchase deducted purchases tax amount of agricultural products has been approved, still according to the ministry of finance the state administration of taxation on the part of the industry for agricultural products of VAT amount shall be deducted to notice (caishui [2012] 38), the ministry of finance the state administration of taxation on expanding the scope of the pilot industry produce VAT amount shall be deducted notice (caishui [2013] no. 57). Among them, the "law of produce VAT amount shall be deducted the measures for the implementation of the pilot (caishui [2012] no. 38 printing) (2) of article 4 of the prescribed deduction rate adjustment is 11%; Article (3) the deduction rate stipulated in paragraph (3) shall be implemented in accordance with paragraph (1) and (2) of this article. 

 

(4) shall be exempted from VAT taxpayer purchased from wholesale and retail link apply policy of some fresh vegetables and meat and eggs and the commercial invoice, shall not be used as computational deduction of input tax receipts. 

 

(5) for taxpayers who purchase of agricultural products is used in the production of sales or entrust the agent processing 17% tax on goods and services used in production and sales of other goods, shall be accounted for separately used in the production of sales or entrust the agent processing cargo and other goods 17% tax rate of VAT on purchase of agricultural products. Had not been accounted for separately, unified with the special invoices for value-added tax or customs import VAT value shall be the input tax payment written, or in the purchase invoice or sales invoice indicated in the purchase price of agricultural products and the deduction rate to calculate the input tax of 11%. 

 

(6) of the law of the People's Republic of China on value added tax is temporary byelaw "in paragraph 2 of article 8 (3) and sales invoices mentioned in this notice refers to agricultural producers sales sell agricultural products shall be exempt from value-added tax policy and the commercial invoice issued shall apply. 

 

The rate of export of goods listed in annex 2 of this notice shall be adjusted to 11%. Export rebates for export goods shall be subject to the export date specified on the export declaration form. 

 

The foreign trade enterprise shall export the goods listed in annex 2 of the notice on August 31, 2017, and the value of VAT shall be levied at the rate of 13 per cent at the time of purchase. At the time of the purchase, VAT was levied at 11%, and an 11% export rebate rate was carried out. The production enterprise shall export the goods listed in annex 2 of the notice to the export tax rate of 13% on August 31, 2017. The time of export goods shall be executed according to the export date indicated on the export declaration form. 

 

The notice shall be executed on July 1, 2017. The notice shall be subject to the specific scope of the VAT rate, deduction rate and relevant goods specified in this notice. The ministry of finance the state administration of taxation on part shall be exempted from fresh meat and eggs products circulation policy of value added tax notice (caishui [2012] no. 2012) in article 3 shall be repealed simultaneously. 

 

Fifth, we should attach great importance to the work of Jane and the VAT rate, strengthen the leadership of the organization, and make careful arrangements and clear responsibilities. We will ensure that the tax rates are smoothly and orderly. Please report to the ministry of finance and the administration of taxation in a timely manner. 

 

The tax bureau of the ministry of finance 

 

On April 28, 2017