The tax rate is lowered by 1.5%, and it is expected that Gansu second-hand car dealers will reduce the burden by nearly one million yuan-
tax reduction and burden reduction, the second-hand car market is expected to recover
Our reporter Li Chenqi correspondent Zhao Zichen
Recently, the Ministry of Finance and the State Administration of Taxation issued the "Announcement of the Ministry of Finance on the VAT Policy on the Distribution of Used Cars", which clarifies the taxpayers engaged in the distribution of used cars from May 1, 2020 to December 31, 2023. The sales of the used cars purchased by them will be levied at a rate of 3% at a reduced rate of 2% and adjusted to 0.5% at a reduced rate. The introduction of the policy of greatly reducing the tax rate on used cars has received widespread attention in the industry.
So, what impact will the new policy have on the used car market? The reporter from Economic Daily learned from the interview with the Gansu Provincial Taxation Bureau that it is expected to reduce the value-added tax burden of second-hand car dealers in Gansu Province by nearly one million yuan this year. Experts in the industry believe that the new policy will force the transformation and upgrading of the used car market and guide enterprises towards standardized and standardized operations. Second-hand car dealers will usher in new development opportunities.
Force the market to regulate development
At present, dealers generally pay VAT at a rate of 2% when buying and selling second-hand cars. However, in actual operation, due to personal transactions in cars and other items used by themselves can be exempted from value-added tax, resulting in the "yellow" service came into being, many brokerage agencies and individual traders are more willing to pass in the used car trading market The intermediary service takes the agreed commission as a profit and pays VAT on the commission portion, but the overall VAT burden is much lower than 2%, which brings a big impact on used car dealers.
The reduction of the VAT collection rate policy for second-hand car dealerships and the fair VAT burden will undoubtedly bring new opportunities for the development of the industry. Not only can it reduce the burden of capital used by second-hand car dealerships, but it is also conducive to promoting direct benign competition for car dealers It will further boost domestic automobile consumption and realize the overall healthy and sustainable development of the industry.
"As used car dealership companies need to face many individual customers, many old car bills are incompletely preserved, and it is difficult to obtain formal bills, thereby increasing the financial burden of the enterprise." Liu Chunjiang of Baiyin Xinguan Used Car Trading Market Co., Ltd. said, There are still unlicensed operations and mixed fish trades in second-hand car transactions to varying degrees. This tax rate adjustment has greatly encouraged benign competition among second-hand car companies and effectively lowered the threshold for subsequent market regulation.
Kou Yonghui, head of Jinhu Second-hand Car Dealing Market Co., Ltd. in Huining County, Gansu Province, was also quite touched: "The consumption of second-hand cars has been weak in recent years, and policy support is urgently needed. The introduction of such preferential policies is really a gift from the snow." To be improved, the actual business of most second-hand car dealers has changed from "distribution" to "brokerage", the survival space of enterprises with standardized operations is getting smaller and smaller, and the profit range is constantly being squeezed. The new policy came at the right time, which boosted the confidence of second-hand car dealers and also played a positive role in further regulating the second-hand car market. Kou Yonghui said: "I believe that the introduction of the new policy will attract more large-scale regulated enterprises to enter the market, which is conducive to stimulating the transformation and upgrading of the entire second-hand car industry. Market operation will soon be on track. Enterprises will also cherish and use this Preferential policies, accelerate the resumption of production and production, and strive to contribute to the promotion of local economic development and employment. "
Reduce business burden
"The used car industry has faced many individual customers for a long time, so it is difficult to obtain a VAT special invoice deduction. Many factors such as heavy tax burden and high cost have restricted the development of the enterprise for a long time." Because of the epidemic, the overall sales of used cars fell into a downturn, Qingyang, Gansu Li Qing, the legal person of Qin Longxiu Second-hand Car Trading Market Co., Ltd., calculated an account. The company's sales income in the second half of last year was 410,000 yuan, and it is expected to be exempted from tax for 6150 yuan for six months in accordance with the new policy.
"In this critical period, so many taxes can be reduced, which provides strong support for us to reduce costs, increase profits, and expand scale. With policy support, we are more confident to overcome the current difficulties." Li Qing said.
"After the tax rate is lowered to 0.5%, the pressure on enterprises is significantly reduced." The relevant person in charge of Lanzhou Star Automobile Co., Ltd. said that the adjustment of the used car transaction policy is particularly important for enterprises to further expand the used car business. After the introduction of the new policy, the company immediately began to plan to expand the used car business: “We made a simple calculation based on the revenue in 2019 and the first quarter of this year. The value-added tax reduction of 750,000 yuan has a significant tax reduction effect. This aspect eases the pressure on the company ’s capital turnover and enhances confidence in resumption of production and production; on the other hand, the new policy promotes the sales of second-hand cars and stimulates automobile consumption. The situation will get better and better. "
Gradually boost market confidence
For Baiyin Xinshengding Used Car Trading Market Co., Ltd., a one-time reduction of 1.5% in VAT burden has also injected confidence into the company's operation. The company's legal representative Wang Cunfan said: "We have two business models. If the registration of the transfer of the vehicle is registered under its own name and then sold, according to the previous policy, monthly sales of 30,000 yuan will be taxed, which means that basic sales of an old car will be taxed. But now not only the quarterly sales are less than There is no need to pay tax for 300,000 yuan, and even if we exceed it, we can pay tax at 0.5%, which greatly reduces the tax burden and gives us more room to choose our business model. "
Ma Yingchao, a professor at the Party School of Gansu Provincial Party Committee (Gansu Administration College), believes that the outbreak of the New Coronary Pneumonia epidemic has plunged the auto sales industry into a downturn. The reduction in the value-added tax rate for used cars will not only reduce the tax burden on dealers, stimulate consumption, and activate used car transactions. The prosperous market development can also use the transmission effect to drive the development of new car consumption, auto parts processing, trade and logistics and other related service industries, thereby helping to stabilize market expectations, stimulate market vitality, and boost economic development.
Du Zhengping, Director of the Cargo and Labor Tax Department of the Gansu Provincial Taxation Bureau, said that the next step of the Gansu tax system will increase its efforts, through multi-channel and multi-dimensional policy publicity, timely guidance to taxpayers to complete the invoicing system upgrade, and fully protect the "contactless" "The tax processing channels are unobstructed, so that" the tax processing will not meet and the service will not be discounted "to ensure that the province's second-hand car dealerships successfully issue second-hand car sales invoices with a new VAT collection rate after May 1.
Li Chenqi