Whether the new energy vehicle subsidy is subject to value-added tax or not

category:Finance
 Whether the new energy vehicle subsidy is subject to value-added tax or not


Before that, the state subsidies received by new energy vehicle enterprises were linked to the sales volume and transportation capacity of vehicles. For example, according to the announcement, new energy vehicles may also have to pay value-added tax. The head of a domestic new energy vehicle enterprise told reporters that the central government fully supports the introduction of tax reduction measures for enterprises in order to reduce taxes and stimulate the economy, but if the new energy vehicle financial subsidies are charged with value-added tax in this special period of continuous decline in sales, the impact on the industry will be very great.

Stir a pool of spring water

The reporter learned that at present, new energy vehicles are exempt from vehicle purchase tax in the process of sales, but they need to pay value-added tax, and the unified invoice for vehicle sales is issued when purchasing vehicles. Therefore, the selling price quoted to the new energy vehicle buyer is the final selling price including VAT after subsidy, that is, the total selling price including VAT.

The previous announcement of the State Administration of Taxation on issues related to value added tax of central financial subsidies (No. 3, 2013) clearly pointed out that the central financial subsidies obtained by taxpayers do not belong to the taxable income of value-added tax and are not subject to value-added tax. This shows that in the past six years, the subsidies for new energy vehicles obtained by automobile enterprises do not need to pay value-added tax.

But after the announcement of value-added tax collection and management is officially implemented, this benefit may come to an end. Some insiders have analyzed that if the state subsidies for new energy vehicles also need to pay value-added tax, then the car companies may transfer this part of the expenditure to consumers, and the price of new energy vehicles will increase accordingly.

In fact, for new energy vehicle companies, simply raising the price is not a real concern. Compared with some developed countries that directly reduce the users use cost through consumption tax relief, our country allocates subsidies to the enterprise side, so that the enterprise also bears more work and cash pressure, such as paying on behalf of others, and the payment collection period is too long. The head of the new energy vehicle enterprise told reporters.

At the same time, he said that 2020 will be a key node for new energy independent brand enterprises. After the decline of subsidies, the market will decline significantly. Joint venture brands will come in a large number. Domestic new energy vehicle enterprises are still looking forward to a stable expectation and continuity of subsidies. My business is of medium scale, with only a few billion yuan. Some of the top enterprises hold 10 billion yuan of subsidies, even if the value-added tax is levied by a few percent, the burden is not generally large. The person in charge of the above-mentioned automobile enterprises told reporters that many new energy automobile head enterprises are already making money at a loss, making profits at a low price for consumers at the sales end, really cant afford any storm..

The reporter asked a number of new energy vehicle enterprises and learned that the interpretation of the announcement on value-added tax collection and management in the industry is not the same at present. Some vehicle enterprises with optimistic views think that the sales volume of new energy vehicles continues to be low. At the same time, with the elimination of state subsidies in 2020, the relevant departments are unlikely to choose to pressurize the enterprises at this time.

However, more CFOs (chief financial officers) of automobile enterprises say that the tax policies and regulations are very strict and cannot be changed at will, and they have no unified conclusion at present. It is also hoped that the state will give a further clear interpretation in line with the purpose of reducing the burden of enterprises and supporting the development of enterprises.

It is worth mentioning that the implementation time is specified in the announcement of VAT collection and management, and articles 2 to 7 of the announcement shall come into force as of January 1, 2020. In case of any unsettled matters that have occurred before, it shall be implemented in accordance with this announcement, and the handled matters shall not be adjusted. To this end, the CFO of the above-mentioned vehicle enterprises told reporters that according to the literal meaning, that is, the vehicle enterprises that have received the state subsidies for new energy vehicles will be treated as the original non payment of taxes, and the subsidies that have not been received will be treated as the payment of taxes.

Chinas subsidy policy

Need innovative forms to give social support

In fact, in recent years, the United States, Japan, the European Union and other developed countries and regions have continued to increase their support for the new energy vehicle industry. Their financial subsidy policies cover all aspects of research and development, production, purchase, retention and use, effectively promoting the production and application of local new energy vehicles.

According to the latest news, the German government will launch a five-year plan to expand the subsidy for electric vehicles from 2020. The subsidy for PHEVs will be increased from 3000 euros to 4500 euros, and the subsidy will be increased to 5000 euros for vehicles priced over 40000 euros.

Looking back at Chinas subsidy policy for new energy vehicles, since its implementation in 2013, it has mainly encouraged the development of passenger cars and special vehicles. After 2016, subsidies for passenger vehicles gradually took the leading position. Since 2018, the reduction of subsidies has directly led to the trend decline of new energy vehicle market, and the strength of subsidy policies is still the core factor affecting the market.

In this regard, Cui Dongshu, Secretary General of the market research branch of China Automobile Circulation Association, believes that the policy incentives of Germany and the United States to vigorously encourage the development of new energy vehicles reflect the attention of European and American countries to the development of new energy vehicles, especially the United States has given sufficient support to the sustainable and sustainable subsidy policies for new energy vehicles.

In Cui Dongshus view, the United States does not give other enterprises more preferential policies, but promotes strong enterprises and encourages automobile enterprises to become stronger. As the largest new energy vehicle market in the world, how to maintain the first mover advantage and how to smoothly pass the era of non subsidy deserves our attention. China needs subsidies and social support for innovative new energy vehicles. At the same time, the policy of individual income tax reduction is a good policy that is conducive to the consumption of residents. Family car purchase should enjoy the same individual income tax exemption policy as house purchase, and multiple measures should be taken to ensure that China maintains an advantageous position in the new energy competition with the United States, Germany and other countries. Cui Dongshu said.

Source: responsible editor of Securities Daily: Yang qian_nf4425