Zhejiang'S VAT Threshold Has Been Adjusted To 20 Thousand Yuan &Nbsp, And Small And Micro Enterprises Have Benefited From It.

According to the revision issued by the Ministry of Finance and the State Administration of Taxation on People's Republic of China

According to statistics, as of October 2011, there were 1 million 854 thousand and 100 VAT taxpayers in Zhejiang, including 1 million 179 thousand and 700 small businesses and 628 thousand and 300 small scale individual businesses.

Following the adjustment of the new ceiling, the small scale individual businesses in Zhejiang will be added 365 thousand and 600 new businesses, and will be exempt from VAT by about 2 billion yuan annually.

The province is exempt from the small scale individual of increment duty.

"The value added tax threshold has been raised, and tax support for individual businesses and small and micro enterprises has been increased, among which the benefit of individual businesses is the biggest."

The head of the Zhejiang State Administration of Taxation said that the tax authorities at all levels of the province will visit the individual businesses and small and micro enterprises to investigate and strengthen policy advocacy and business guidance so as to ensure that the preferential tax policies are put in place.

Help small and micro enterprises to move forward lightly

In recent years, the high cost of labor, the high cost of financing and the high price of raw materials have become the bottleneck restricting the development of small and micro enterprises.

The burden of small and micro enterprises is particularly important in coastal areas.

Pinghu's IRS has carried out a survey of 10 small garment enterprises with annual sales of about 1 million yuan, indicating that the sales volume of 10 enterprises in the first three quarters of this year has declined to varying degrees.

At the same time, wage expenditure grew by an average of 15%, the average cost of sales increased by 4.71%, and the profit margin of sales decreased by 3% on average.

"This time, Zhejiang will raise the value added tax threshold at the highest limit. Our enterprises can exempt all kinds of taxes and fees for more than 12000 yuan throughout the year from below the threshold."

Liu Yuping runs a mini garment processing enterprise in Pinghu.

He used his own garage as a workshop, including two couples and 5 workers. When he was busy farming, he went to a large garment enterprise to find some processing work. When he was busy, he laid down the factory and cultivated the ration field. The monthly quota fixed by the tax department to his enterprise was 18000 yuan.

Before the adjustment, Liu Yuping's business was not exempt from the target. It had to pay 3% VAT and 2.8% additional taxes and fees, totaling 1000 yuan per month, and 12000 yuan a year.

After the adjustment, Liu Yuping's business is exempt from all kinds of taxes and fees, which is equivalent to an increase of more than 12000 yuan of income throughout the year.

As a national garment export base, there are more than 1500 garment enterprises in Pinghu.

There are three hundred or four hundred small and micro enterprises in Pinghu enjoying such tax relief and benefits as Liu Yuping.

Pinghu city tax bureau official said that the Zhejiang province will adjust the value added tax threshold to the highest standard, the commercial small taxpayer raising the tax threshold to 4 times the original, the industrial small-scale taxpayer raised the threshold to 6.6 times the original, which can be called the most preferential policy of "the highest discount rate, the most widely benefited and the most beneficial tax".

According to statistics, as of now, there are more than 16000 VAT taxpayers in Pinghu. After this adjustment, 3161 new tax exempt taxpayers were added to Pinghu, plus the individual industrial and commercial households who had not reached the threshold. There were 8000 individual businesses and small and micro enterprises that were exempt from VAT in Pinghu, accounting for 50% of the total value added tax households.

It is estimated that these small and micro tax payer households will benefit from 237 yuan per month for VAT exemption each month, with an average annual profit of 2846 yuan, together with a waiver of additional tax and fee, and each household will be averted 5550 yuan a year on average.

The head of the Zhejiang State Administration of Taxation pointed out that small and micro enterprises play an important role in developing the economy, expanding employment and social stability.

Since the implementation of the VAT, this is the largest adjustment of the exemption from the levy, which helps small and micro enterprises get out of the predicament and move forward lightly.