What is the Meaning of Automobile Value-Added Tax?
1 Answers
The automobile value-added tax refers to a type of turnover tax levied based on the incremental value generated during the circulation of automobiles. Below is a detailed introduction to the value-added tax: 1. Tax rate: Starting from May 1, 2018, the value-added tax rate for manufacturing, automobiles, and other industries was reduced from 17% to 16%, while the value-added tax rate for transportation, construction, basic telecommunications services, and agricultural products was reduced from 11% to 10%. 2. Scope: The value-added tax typically covers all stages of production, circulation, or consumption. It is a neutral tax based on the incremental value or price difference and theoretically includes various sectors such as agriculture (farming, forestry, and animal husbandry), mining, manufacturing, construction, transportation, and commercial services.