How does the hottest newspaper group cope with rep

2022-08-13
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With the approval of the State Council, many provinces and municipalities directly under the central government, including Jiangsu, have carried out the pilot work of levying value-added tax (i.e. replacing business tax with value-added tax) in the transportation industry and some modern service industries since October 1, 2012. Advertising services, as a part of modern service industry, have also been included in the pilot scope. Advertising is one of the main sources of income for newspaper groups. This paper analyzes the impact of replacing business tax with value-added tax on newspaper groups, and puts forward countermeasures

I. impact of replacing business tax with value-added tax on newspaper groups

1 Impact on tax burden. As a special commodity, newspaper has its unique circulation and value-added process. In the process of circulation, the value of general commodities increases, while newspapers, in the process of publishing, printing, distribution and sales, not only fail to realize value-added, but also suffer from impairment, that is, the quotation is inversely linked to the cost. At the same time, the tax rates of value-added tax input tax and output tax in the newspaper industry have also been inverted. The input tax rate of newspaper raw material paper and printing materials is 17%, while the output tax rate of newspaper sales is 13%

before replacing business tax with value-added tax, due to these two reasons, the input tax of newspaper groups was often greater than the output tax, and the input tax allowance appeared on the book, and the amount of allowance increased year by year like a snowball. After replacing business tax with value-added tax, according to the regulations of the tax authorities, the input tax retained by the newspaper group before October 1, 2012 cannot be used to offset the sales tax payable on advertising revenue, but it can be used to offset the sales tax payable on newspaper distribution, printing and goods sales, and the new input tax added on October 1, 2012 and after can be fully deducted from all kinds of output tax. In this way, the input tax allowance of newspaper groups will no longer increase. Since the implementation of replacing business tax with value-added tax, the actual value-added tax paid by the newspaper group is mostly lower than the business tax payable based on the business tax rate, and the overall tax burden of the industry has decreased. The reason is that raw materials such as paper and printing consumables account for a large proportion of the cost of newspaper groups, and the input tax used to offset is relatively sufficient. The specific extent of tax burden reduction depends on the different situations of newspaper groups. Generally speaking, the more paper consumption of newspaper groups, the greater the input tax, the greater the tax burden reduction. In addition, if the circulation of newspapers with legal person status and independent tax payment subordinate to the newspaper group is small or the number of newspaper pages is small, the amount of paper used and the input tax are small, and the tax burden is likely to increase after the business tax is changed to value-added tax. If the tax burden increases a lot, you can apply for temporary subsidies from local finance according to relevant policies, and you can also reduce the tax burden through business integration within the group

2. Impact on profitability

(1) other costs remain unchanged. For example, the annual distribution revenue of a newspaper group is 300 million yuan, and the advertising revenue is 50 million yuan; The annual cost of raw materials (paper and printing expenses) is 310million yuan, and other costs other than business tax are 3500million yuan. Assuming that other factors are not taken into account, the advertising revenue of the newspaper group will no longer pay business tax after the replacement of business tax with value-added tax, but pay value-added tax instead, which will reduce the business tax by 25million yuan (50000 5%); As the value-added tax is an extra price tax, the advertising money can be included in the income after removing the 6% output tax, that is, only 94.34% (11.06 100%) of the advertising money is included in the operating income, and the other 5.66% is included in the value-added tax output tax, so the operating income is also reduced accordingly. The advertising amount recorded in the operating income was 471.7 million yuan (50000 1.06 or 50000 94.34%), the advertising amount recorded in the output tax was 28.3 million yuan (50000 5.66%), and the operating income decreased by 28.3 million yuan (50170). Assuming that other revenue and expenditure factors remain unchanged, the total profit of a newspaper group after replacing business tax with value-added tax has decreased by 3.3 million yuan compared with that before replacing business tax with value-added tax, that is, the decrease is the difference between the decrease in operating revenue and the decrease in business tax

(2) when the input tax of advertising is no longer accrued. From the above example, under the condition that other costs remain unchanged, the total profit of the newspaper group has decreased after the replacement of business tax with value-added tax. However, in reality, Jinan experimental machine, as a branch of the instrumentation industry, has increased its total profit because the input tax on newspaper advertising is no longer transferred out after the replacement of business tax with value-added tax. Before replacing business tax with value-added tax, the value-added tax on newspaper sales and business tax on newspaper advertisements should be levied. In order to avoid double taxation, the value-added tax on newspaper sales should not cover the newspaper advertising page, and the input tax contained in the advertising page should also not be used for deduction and should be transferred out. In view of this, according to the requirements of the tax authorities, the newspaper group will transfer out the input tax contained in the advertising page and include it in the cost according to the proportion of the advertising page in the total page of the newspaper. After the replacement of business tax with value-added tax, the input tax on advertising is no longer transferred out, and the cost is reduced, thus increasing the total profit of the newspaper group. Continue with the above example: assuming that the advertising page of a newspaper group accounts for 20% of the total page of the newspaper in the whole year, and the advertising transferred from the input tax of paper and printing materials accounts for 10.54 million yuan (31000 17% 20%), 2. The machine is supplemented with hydraulic oil by a special oil pump for the pulser system, the comparison of the profitability of a newspaper group before and after replacing business tax with value-added tax is shown in Table 2. It can be seen from table 2 that after the replacement of business tax with value-added tax, the advertising revenue of the newspaper group decreased by 28.3 million yuan, the business tax decreased by 25 million yuan, and the cost decreased by 10.54 million yuan, resulting in an increase in total profit of 7.24 million yuan

since August 1, 2013, the pilot of replacing business tax with value-added tax has been expanded to the whole country. Newspaper groups can obtain more deductible input tax, and the cost will further decline, which is objectively more conducive to the improvement of profitability

3. Impact on cash flow. The impact of replacing business tax with value-added tax on the cash flow of the newspaper group is also positive: on the one hand, the input tax originally retained by the newspaper group after replacing business tax with value-added tax can be deducted according to the proportion specified by the tax authority, which is equivalent to slowly realizing the input tax originally retained; On the other hand, the value-added tax paid by the newspaper group after replacing business tax with value-added tax is less than the business tax paid before replacing business tax with value-added tax, the tax burden decreases, the cash outflow decreases, and the tax items paid in the cash flow statement decrease accordingly. At the same time, the output tax collected from advertisers and the input tax paid to suppliers after replacing business tax with value-added tax are recorded in the cash received from selling goods, providing labor services and the cash paid for purchasing goods and receiving labor services, which has no impact on the cash flow statement when the advertising revenue remains unchanged

II. The newspaper group's strategy to replace business tax with value-added tax

1 Reasonable business integration. As mentioned above, replacing business tax with value-added tax is a good tax policy for the newspaper group, because the newspaper group obtains a large amount of input tax due to the purchase of raw materials such as paper. However, if the unit responsible for purchasing paper in the newspaper group is a legal person enterprise (such as a material supply company), that is, the relationship between the newspaper group and the purchasing unit is a parent subsidiary company, it is difficult to enjoy the policy dividend of replacing business tax with value-added tax. For this reason, business integration must be carried out, and the paper procurement business must be entrusted to the business division (such as the material procurement center) that does not have the legal personality within the group. Similarly, for independent tax payers within the group with more advertising output tax and less input tax, their legal personality can be cancelled and they can be changed into a business department within the parent company of the group when conditions permit

2. Try to increase the input tax. As a taxpayer, the parent company of the newspaper group, no matter what material fatigue testing is, is very important. After the implementation of replacing business tax with value-added tax, in the case of a substantial increase in advertising output tax, it should obtain sufficient legal input tax for deduction. To this end, the group can clearly stipulate that all units and departments should, as far as possible, obtain the special VAT invoice issued by the sales unit in the process of daily purchasing goods, purchasing goods or accepting various VAT taxable services, so as to increase the input tax deduction of their own units and reduce costs at the same time. The time of obtaining the special VAT invoice is also appropriate. As for paper procurement, as long as the paper is accepted and warehoused, the special VAT invoice issued by the supplier should be obtained at the first time and sent to the financial department for timely accounting and certification

3. Improving and refining the accounting nuclear dynamometer requires high calculation. Newspaper groups operate a wide range of businesses, involving advertising, distribution, printing (printing), commodity material purchase and sales and many other aspects. Different value-added tax rates apply to different businesses. For example, the output tax rate of advertising business is 6%, that of distribution business is 13%, and that of printing business and material sales business is 17%. Different types of revenue should be accounted for separately. Under the main business revenue account, detailed accounts such as advertising revenue, distribution revenue, printing revenue, commodity and material sales revenue should be set according to the business category, and they should be classified and presented in the relevant financial statements. In addition, a four-level detailed account can be added under the output tax of tax payable and value-added tax payable to calculate the output tax of different businesses and different tax rates respectively, so as to facilitate the tax accountants to declare tax according to the new regulations, and also facilitate the financial analysts to make a comparative analysis of the arrival of advertisements before and after the business tax reform and value-added tax, and add 6% output tax to the book advertising revenue after the business tax reform and value-added tax, Make a comparison with the data of the previous year before replacing business tax with value-added tax, so as to accurately analyze the increase and decrease of advertising revenue and judge the business situation. The parent company of the newspaper group is often composed of multiple business departments, which can implement secondary accounting respectively, and all accounting data, including taxes, are finally summarized by the group headquarters. Separate accounting is not only the standard requirement of the tax department, but also the basic need of internal assessment and management of the group

4. Focus on strengthening process management. Replacing business tax with value-added tax is a new practical work for the newspaper group. During the specific implementation, on the one hand, the local tax authorities should terminate the advertising business tax declaration and pay and cancel the local tax invoice. On the other hand, the national tax Invoicing system should be enabled to apply for value-added tax invoice. In order to ensure the normal operation of advertising and the smooth transition of advertising Invoicing, the financial department of the newspaper group should maintain close communication with the tax authorities, arrange relevant personnel to participate in learning and training while the software and hardware of the national tax Invoicing system are in place, and ensure that the financial executives are aware of the policy and the front-line operators are familiar with the new Invoicing system. At the same time, the newspaper group will also improve its VAT invoice management system according to the tax law and the actual situation, so as to standardize the handling of advertising VAT invoice problems that may occur after replacing business tax with value-added tax

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