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“VAT to replace business tax” is an important part of the reform of tax system during “the twelfth five-year plan” of China, and this will be carried out step by step: firstly, we launch the pilot in some industries and some areas; secondly, this will be executed in some industries nationwide; thirdly, to finish “VAT to replace business tax” in the industry overall and to eliminate business tax.
On Jan 1st 2012, Shanghai, as the first pilot city, officially started “VAT to replace business tax”, and recently, it apply to surpass the range of “6+1”, to expand the pilot field. Beijing is in the final preparation period for the pilot, and there is big chance that Beijing will be the second pilot city of “VAT to replace business tax”. At the same time, more than ten provinces and cities, including Anhui, Shenzhen, Tianjin, Chongqing, Jiangsu, Zhejiang, will gradually apply to the pilot of “VAT to replace business tax”.
“VAT to replace business tax” conforms to the trend. It is possible that this will be finished during “the twelfth five-year plan”. Combining the feedback of the pilot of Shanghai, we notice that the company will primarily face the following taxation risk:
(1) The risk of increasing the real tax burden of company;
(2) The risk that the company cannot enjoy the original preferential policies;
(3) The administrative and criminal risk arising from special invoice of value added tax;
(4) The tax inspection risk caused by declaration of value added tax;
(5) The risk of financial accounting and non-compliance of taxpaying under the new tax system; etc.;
To avoid the above taxation risk, the pilot company of “VAT to replace business tax” shall make their plan. HWUASON lawyers is invited to participate in the preliminary research and later period project argumentation of Beijing “VAT to replace business tax” pilot. HWUASON has made a lot of preparations and commanded abundant first-hand materials, and therefore we are familiar with the taxation risk brought about by the “VAT to replace business tax”. We can provide comprehensive professional taxation services to the pilot company to help company to reduce the taxation risk to maximize the profit.
The area of HWUASON services:
■ The consultation of policy and training;
■ The application of transitional preferential policy;
■ The application of financial subsidy fund;
■ The design of company’s accounting system and internal control system;
■ The construction of administrative system of special invoice of value added tax;
■ The plan of the recognition of small scale/ general taxpayers;
■ The taxation plan, to reduce tax burden reasonably
■ Other relevant taxation services;
The latest research result of “VAT to replace business tax” of HWUASON: