What is Automobile Value-Added Tax?
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Automobile Value-Added Tax (VAT) is a tax levied on the added value or commodity value increment during multiple stages of goods production and circulation. Below are specific details about VAT: 1. Tax rate: Starting from May 1, 2018, the VAT rate for manufacturing, automobile, and other industries was reduced from 17% to 16%, while the VAT rate for transportation, construction, basic telecommunications services, agricultural products, and other goods was reduced from 11% to 10%. 2. Scope: VAT collection typically covers various stages in the production, circulation, or consumption processes. It is a neutral tax based on value-added amount or price difference as the tax basis. Theoretically, it includes all industrial sectors in agriculture (planting, forestry, and animal husbandry), mining, manufacturing, construction, transportation, and commercial services, or various stages such as raw material procurement, production, wholesale, retail, and consumption.