Recently, the Ministry of Finance and the State Administration of Taxation issued the announcement on Further Strengthening the implementation of the tax rebate policy of value-added tax at the end of the period, and the State Administration of Taxation issued the announcement on Further Strengthening the implementation of the tax rebate policy of value-added tax at the end of the period and related collection and management matters, which defined the specific operation requirements. What is the value-added tax rebate? What impact will this policy have? Ensure timely return of funds Release the vitality of market players "The new thermal insulation materials we developed and produced were unveiled at the Beijing Winter Olympic Games!" Speaking of providing service guarantee for the Winter Olympics, Ma Xiaofei, deputy general manager of Anhui Jixiang Sanbao high tech Textile Co., Ltd., is very proud. In recent years, the company has actively carried out in-depth industry university research cooperation with colleges and universities, accelerated the transformation of scientific research achievements, and started the construction of "5g + smart factory", with a good development momentum. However, a large amount of tax retention and credit once plagued the company - with the increasing investment in infrastructure projects and production equipment procurement, the input tax of the company's value-added tax continued to increase, more incremental tax retention and credit, and the pressure of cash flow doubled. "Last year, we enjoyed 3.85 million yuan of value-added tax rebate for advanced manufacturing, which was fully invested in scientific and technological R & D and production. The tax policy support is indispensable for the company to break through the difficulties faced by transformation and quickly realize the transformation and mass production of production, University and research achievements." Ma Xiaofei said. "This year's" government work report "proposed that large-scale tax rebates should be implemented in advance for the retention tax credit, which is really good news." "This year, the company is expected to enjoy a VAT rebate of more than 4 million yuan, which will provide an important guarantee for us to achieve a technological breakthrough in new textile materials," Ma Xiaofei said while calculating the accounts "The state's vigorous improvement of the retention tax rebate system is equivalent to the direct delivery of 'real gold and silver' to enterprises, which is conducive to reducing the capital occupation cost of enterprises, accelerating the timely recovery of funds, improving the cash flow of enterprises, alleviating the shortage of funds and financing difficulties of enterprises, and also helping to release the vitality of market subjects, increase development momentum and boost market confidence." Zhu Qing, a professor at the school of Finance and finance of Renmin University of China, said. "Last year, the company launched a new automatic and intelligent floc production line, and signed ten million yuan order contracts with more than 10 large companies in February this year. The annual output value is expected to be close to 200 million yuan..." looking forward to the new development this year, Ma Xiaofei is full of confidence. We will improve the system of tax rebates for retention Promote industrial transformation and upgrading This year, the implementation of large-scale tax rebates for tax credits in advance can be said to be an "important play" in the tax support policy. What is the value-added tax rebate? First of all, we need to know how the tax allowance comes from. Simply put, when an enterprise pays the price for purchasing raw materials, it should pay value-added tax, which is the input tax; When the enterprise collects the price for selling goods, it will also charge a vat, which is the output tax. When the enterprise needs to deduct the current value-added tax from the current output tax, the current value-added tax shall be calculated. When the input tax amount is greater than the output tax amount, the retained tax amount appears. Why is the input tax higher than the output tax? Shi wenpo, associate researcher of the public revenue research center of the Chinese Academy of financial Sciences, explained that there are two main reasons: one is the time difference, that is, due to the mismatch between the output tax and the input tax in time, for example, there are a large number of cost expenditures but no sales revenue during the preparation of the newly established enterprise, or the enterprise makes a large amount of equipment or inventory investment in the short term, which will produce the input tax to be deducted. Second, institutional differences, that is, due to the different applicable tax rates of import and export items. At present, China's value-added tax implements multiple tax rates, which is applicable to low tax rate industries. It is easy to form a tax allowance because the applicable tax rate for sales is lower than the applicable tax rate for input. "According to the initial policy, the amount of tax retained by the enterprise at the end of the period will not be refunded to the enterprise, but can be carried forward to the future tax period to offset the output tax in the future tax period and reduce the future tax payable. The value-added tax rebate is to refund in advance the input tax that cannot be deducted at present and can be deducted in the future." Zhu Qing said. In fact, China tried out one-time retention tax rebate in some industries in 2018, established a normalized retention tax rebate system in 2019, strengthened the tax rebate of advanced manufacturing industry in the same year, launched a phased anti epidemic tax rebate policy in 2020, and further expanded the tax rebate scope of advanced manufacturing industry in 2021. From 2019 to 2021, the tax authorities handled a total of 1233.9 billion yuan of tax rebates. This year, China will give priority to supporting small and micro enterprises and strengthen the value-added tax rebate policy for large and small micro enterprises. Focus on supporting manufacturing and other industries and comprehensively solve the problem of tax retention and credit in manufacturing and other industries. "From April 1, the incremental tax allowance can be refunded in full on a monthly basis." Upon learning the good news, Jiang Tiangang, the person in charge of Xingda mould factory in Nan'an District of Chongqing, expressed his joy. According to last year's sales scale, Xingda mould factory will increase the tax allowance of more than 10000 yuan per month. After the introduction of the new policy, the funds that could not be used in the past will now become the "real gold and silver" of enterprises. "When the money is returned, we need to buy more new equipment and materials, improve the treatment of employees, and make these funds produce greater economic benefits." Jiang Tiangang said. Shi wenpo believes that this year, China will improve the value-added tax rebate system and optimize the collection, payment and refund process. The relevant policy arrangements will refund not only the enterprise's incremental tax rebate, but also the stock tax rebate; It is not only aimed at small and micro enterprises and manufacturing industry, but also involves service industries such as scientific research and technical services, transportation and so on; It can not only alleviate the retention problem caused by temporal differences, but also solve the retention problem caused by institutional differences to a certain extent, which is conducive to supporting the high-quality development of the real economy and promoting industrial transformation and upgrading. Policy dividend direct enjoyment Enhance taxpayers' sense of gain According to the announcement issued by the State Administration of Taxation, considering that the tax rebate is strong this year and involves many taxpayers, in order to do a good job in tax rebate services and ensure that market entities such as small and micro enterprises can obtain the retention tax rebate as soon as possible, the application time for retention tax rebate from April to June this year will be extended from the declaration period to the last working day of each month, but taxpayers still need to apply for retention tax rebate after completing the current VAT declaration. Wang daoshu, deputy director of the State Administration of Taxation, said that the tax authorities have taken a series of measures to quickly set up special classes for the implementation of tax rebate and tax reduction policies in the State Administration of Taxation and provincial, municipal and county-level tax bureaus, and formulate relevant work plans for tax service, publicity and guidance, supervision and supervision. At present, all work is progressing smoothly. In order to ensure the detailed implementation of the policy, all regions and departments actively deploy and promote the direct enjoyment of policy dividends. In Shandong, the Taxation Bureau of Qingdao Economic and Technological Development Zone reduced the time of examination and approval and circulation links, and paved a "highway" for handling the tax rebate of retention. In Shanxi, the tax department actively promotes the online application processing method, and improves the sense of gain of taxpayers and payers through functions such as "automatic reminder" and "intelligent filling in". "It is expected that the fiscal revenue will continue to grow this year. In addition, specific state-owned financial institutions and franchise institutions will turn in the remaining profits in recent years according to law and transfer them into the budget stability adjustment fund. The available financial resources will increase significantly, which provides important support for the large-scale value-added tax rebate." Zhu Qing suggested that in the next step, the state should take this large-scale VAT retention and tax rebate as an opportunity to continue and improve the VAT retention and tax rebate system, expand policy coverage, strengthen tax rebate, and dynamically avoid the larger and larger scale of VAT retention and tax rebate, so that market players can better pack light. Shi wenpo believes that in order to improve the VAT rebate system in the future, we need to strike a balance between reducing the burden on enterprises and ensuring government revenue, reducing management pressure and preventing fraudulent tax rebates. On the one hand, reduce the burden on enterprises, on the other hand, it will not put too much pressure on fiscal revenue and enhance fiscal sustainability. (Xinhua News Agency)