- Phone：0086-4006769700 / 021-57406070
- Fax：0086-021-57406123
- Email：4006769700@sunny-hvac.com
- Address：No.128 Huian Road Wuqiao Industrial Park Fengxian District Shanghai China
On March 5, in the two national conferences being held, the government work report proposed to reduce the current 16% tax rate in industries such as manufacturing to 13%, and reduce the current 10% tax rate in the transportation, construction and other industries to 9. %, keep the 6% first rate unchanged.
After the introduction of this tax reduction policy, it was a major positive for manufacturing companies, but many bosses reported that their customers took the opportunity to ask for price cuts. Based on the government's proposed increase in value-added tax from 16% to 13%, it is down by 3 percentage points, so can the price be reduced by 3 points?
From a sensible point of view, it seems reasonable to drop the customer by 3%. Then Xiaobian will calculate the account for everyone. Now suppose your purchase cost is 100 yuan and the transaction price is 120 yuan:
01
If you follow the original 16% VAT rate:
The input tax is 100*0.16=16 yuan.
The tax paid for the project is 120*0.16=19.2 yuan.
The tax amount is 19.2-16 = 3.2 yuan.
The actual profit is 120-100-3.2=16.8 yuan.
02
According to the new VAT rate of 13%:
The input tax is 100*0.13=13 yuan.
The output tax is 120*0.13=15.6 yuan.
The tax amount is: 15.6-13 = 2.6 yuan,
The actual profit is 120-100-2.6=17.4 yuan.
This means lowering the value-added tax and allowing the bosses to pay less than the 17.4-16.8=0.6 yuan VAT.
03
But if you reduce the price to 3% for the customer, the cost price is still 100 yuan, and the transaction price is 120* (1-3%) = 116.4 yuan.
At the new 13% VAT rate:
The input tax is 100*0.13=13 yuan.
The tax paid for the project is 116.4*0.13=15.132 yuan.
After the actual deduction,
The tax amount is: 15.132-13 = 2.132 yuan.
The actual profit is 116.4-100-2.132=14.268 yuan.
This earned 16.8-14.268=2.532 yuan less than the original price cut without tax cuts, and the profit decreased by 15.1%!
This is not to know, it is scared. Isn't that a good 3% drop? How does profit fall by 15%?
In fact, if you lower the price of your upstream supply, if your upstream supply cost does not decrease at the same time, your profit will lose nearly 15%.
Therefore, trading is risky and price reduction should be cautious.
The impact of tax reduction on prices
First of all, the national tax reduction rate is not the same as the corresponding reduction in the sales price. The last time we saw the VAT drop by 1%, the price of the goods on the end market did not drop by one percentage point, right? Companies that ask suppliers to cut prices, first look at your own sales price, has it dropped?
Perhaps for the middle-link enterprises, their customers demand such price cuts, they are forced to drop, but this requirement is first transmitted from downstream customers. This is a result of competition and a process of profit distribution. This is not the result of the principle of value-added tax. Therefore, to do business, always think about what kind of competitive environment you are in, and to improve the core competitiveness of enterprises is the key.
Secondly, if all upstream and downstream enterprises are re-adjusting the price according to the national tax rate, or the policy is to reduce the value-added tax rate by 3%, the upstream supplier is required to cut the price by 3% because the government is not taxing the enterprise. With a levy rate of 3% (the levy rate and tax rate are not a concept), the value-added tax is essentially a tax on the value-added part of the enterprise, and the value-added rate of the enterprise will not be 100%.
Moreover, even if each enterprise transfers the government's reduced portion to the downstream enterprise, the VAT of one link is the tax reduction of the value-added part of this link, which is the part that can be transferred to the downstream. The ratio should be the product of the value-added rate of this link and the tax reduction rate. Formulated: tax-free price reduction = value-added rate * 3%, tax-included price reduction = value-added rate * 3 * / 1.16.
For example: the enterprise's input accounts for 60% of the revenue. If the enterprise's input 100% can obtain the VAT special invoice, regardless of the VAT rate, the sales item can be offset, then, for this enterprise It is only taxed at a rate of 40% of the value added.
Then, the VAT is now 3% lower. For the company, it only reduces the VAT tax by 1.2%. This 1.2% is still relatively non-tax sales, not for tax-included sales. Relative to the tax-included sales income before tax reduction, only the tax burden was reduced by 1.0345%.
Therefore, from the perspective of pure tax reduction, the tax reduction of each enterprise depends on the value-added rate of the enterprise and the tax reduction transfer of upstream enterprises.
In fact, upstream companies are not likely to cut prices by 3%. It is only reasonable to transfer the upstream tax cuts to the downstream. As we have analyzed, the tax rate is reduced by 3% and the enterprises are down by 1.2%.
Therefore, the company that wants to reduce the upstream or downstream by 3% is not ignorant.
However, there are many such rogue enterprises in China. In reality, many large groups and enterprises are very strong. They take the opportunity to demand that their suppliers (especially those with sufficient market competition) reduce the price by 3%, and the suppliers must survive in order to survive. Have to accept!
In general, the only reduction is the tax rate, which has nothing to do with the price of goods! ! !
Industrial refrigeration, chiller, Water-cooled screw chiller, industrial chiller, screw chiller, air-cooled chiller, buy products on the Shanghai Shangyu Refrigeration Equipment Co., Ltd., the company is a refrigeration equipment research and development, design, production, sales And high-tech enterprises, such as installation.
At present, Shanghai SUNNY-HVAC's Water-cooled screw chiller, industrial refrigeration, chillers, chillers, Water-cooled screw chiller, screw chillers, and air-cooled chillers have been widely used in chemical, chemical fiber, plastic, grease, food, Pharmaceuticals, military industry, printing, coating, electroplating, electronics and other industries provide high-speed development of China's industry with efficiency and quality assurance.