Large Tin Signs, VAT was reduced from 17% to 16%, and many customers took the opportunity to request a 1% price reduction. It seems that it is reasonable to reduce customers by 1%, but the fact is based on a gross profit rate of 10%, customer A receives 100,000 yuan per month:
Large Tin Signs, tin sign, rectangular tin sign, custom tin sign,
Input tax: 90,000 x 17% = 15,300
Output tax: 100,000 × 17% = 17000
Value added tax: 17000-15300 = 1700
After tax reduction
Input tax: 90,000 × 16% = 14400
Output tax: 100,000 × 16% = 16,000
Value added tax: 16000-14400 = 1600
Amount of tax reduction: 1700-1600 = 100 yuan
Seeing it, seeing it, the monthly payment is 100,000 before the tax reduction is 100 yuan, not 100,000 x 1% of 1,000 yuan.
This means that if you reduce the price to the customer, if your supplier does not reduce the price for you at the same time, the profits will be greatly lost!
Tax reduction is the national policy of benefiting the people. Enterprise purchases, sales, and tax rates have been reduced. There is no such thing as a price reduction. Tax reduction does not mean price reduction!
Here is another example:
The enterprise's input accounts for 60% of the revenue. If the enterprise's input is 100% able to obtain a special value-added tax invoice, regardless of the value-added tax rate, the input and sales items can be offset. Then, for this enterprise, it is only value-added. 40% is taxed at the tax rate.
Then, the value-added tax is now reduced by 3%. For the enterprise, it only reduces the value-added tax burden by 1.2%. This 1.2% is still relative to tax-free sales, not to sales income with tax. Relative to the tax-included sales income before the tax reduction, the tax burden was only reduced by 1.0345%. Expressed by formula: price reduction without tax = value-added rate * 3%, price reduction with tax = value-added rate * 3 * / 1.16.
Therefore, from the perspective of pure tax reduction, the tax reduction space for each enterprise depends on the value-added rate of the enterprise and the tax reduction transfer of upstream enterprises. In fact, it is not possible for an upstream company to reduce its price by 3%. It can only transfer the part of the upstream tax reduction to the downstream. As the example of our analysis, the tax rate is reduced by 3%, and the enterprise price is reduced by 1.2%.
Therefore, when encountering customers again to reduce taxes to reduce prices, we must be careful not to enter the pit anymore.
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Yum Tin(Manufactory) Co., Ltd. is a professional tin boxes manufacturer, specializing in the design, development and production of customized tin boxes. Founded in 1999, it’s now one of the biggest tin box manufacturers in China. It owns automatic production
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Yum employs about 2,800 staff, and its factory covers an area of 25,000 square meters. Its daily production capacity reaches 600.000pcs, and the annual production value is over 60million US dollars.
Yum is certified with ISO9001:2000 and ISO22000:2005 (HACCP). It passed the check of Coca Cola, Mcdonald, Sedex, RQA, GSV.
All of tin boxes are made of grade A tinplate and printing ink which are imported from Japan. The printing is done by the most
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