Vat After The Printing Equipment, The Impact Of Finance Leases

Introduction of this policy on the printing industry, finance leases are affected? We look at the printing equipment financing, leasing to tax-related features of the pros and cons.

China from January 1, 2009 onwards, the introduction of new value-added tax policy, one of the important thing is to buy equipment companies paid VAT as input tax and the sales output tax to arrive when button. This greatly encouraged the desire for corporate investment, reducing the Purchase Equipment costs. Is in line with our financial tsunami, to continue to expand domestic demand requirements. Also conducive to the development of the printing industry.

Destined to value-added tax reform Printing Equipment Lease Impact

Introduction of this policy on the printing industry, finance leases are affected? We have to look Printing Equipment The characteristics of finance leases to tax-related analysis of the pros and cons.

Lease finance leases mainly small and medium enterprises;

Leasing enterprises are mostly cash transactions, financial usually not standardized;

Lease mostly limited to imports of equipment, five well-known brands, they are using the Chinese capital for their risk of credit sales;

So far, only the "Shanghai Electric" is a company set up its own financial leasing company to lease the way the credit sales;

Lessee entered into purchase contracts with vendors and then sold back by way of finance lease rental.

Determine these characteristics, SMEs because of financial irregularities, by printing equipment acquired under finance leases do not deductible. Second, because there is no deductible, so the imported equipment import VAT and in the past by Duty-free Policy than the increased cost of procurement.

The normal procurement procedures, if the firm imported printing equipment can be imported with customs VAT tax bills, according to sales value added tax to offset. Therefore, there is no loss for the printing industry, and no additional revenue. Tariffs on imported equipment for the past, and import VAT are mostly tax-free. Although the VAT is imposed, but can be generated when the output tax in the sales deduct the back.

Our country VAT, the financial leasing industry, a problem: In order to ensure that the lease of the property, the lease is usually the buyer is leasing companies, and leasing companies as a service, not the general taxpayer, not to Enterprise open single VAT invoice. Tax department to rental companies as the ultimate consumers of value-added tax transfer to the leasing company at the. But the tenant can not be open to the lessor by virtue of vendors invoices for VAT deduction, the domestic equipment finance leases acquired with the cost of fixed assets is higher than the cost of direct procurement of printing enterprises.

Imported equipment such a benefit. The first international standard used in the commercial invoice invoice. Issued by the company, the original number. Although Taiwan is the first leasing company (in fact, open to everyone the same), open to leasing companies, respectively, imports Proxy Business, the lessee, customs, transportation and insurance sectors. Followed by the lessee to pay import VAT, customs duty alone is directly open to the lessee. Therefore, the lessee can be used to directly offset.

Domestic equipment finance lease because the format of VAT invoices, the lessee can not be used to offset. No such treatment was. Had the share of domestic equipment finance lease not more so to develop, is equal to "shoot" the domestic equipment finance lease transaction. This is the request of countries wish to expand domestic demand is very negative. But no way, this is not a problem printing industry, but a finance lease the problems encountered by the industry. While all calls to the tax department, tax department also recognized the existence of this problem, but so far no solution in sight.

Value-added tax reform, one of the objectives is to make enterprises, especially SMEs, to regulate the financial operation. VAT deduction in your question as much cash operating, regardless of whether it may not be deductible. But it must be compared with the financial regulations and can be deductible business to pay 17% more than the purchase fee. Future cash-based trading and can not tax evasion was.

About The Author I am an expert from Frbiz Site, usually analyzes all kind of industries situation, such as plastic storage tote , hanging mesh storage.