Value-added Tax Planning For A Military Enterprise Group

Tax planning is the behavior embodiment of market entity maturity in market-oriented economy and it to a large extent reflects the level of a company’s taxation and strategy implementation. As one of the major commodity turnover tax, value-added tax is imposed on the added value and regards the entire turnover value as tax assessing sales volume. Based on the entire sales volume of goods and labor service, tax deduction regulation is implemented to deduct the tax from previous links. Value-added tax is collected outside the commodity price, and the seller transfers the tax to buyer by putting the tax in the commodity price. With the extension of commodity circulation, tax is finally paid by consumers. Proportional tax rate is adopted for commodity or the industry. The manufacture and sales of military companies belonging to military system are enclosed in the military product manufacturing plan and the manufactured products will be sold to the army, military factories, national safety system and General Armament Department according to military product pricing principle without value-added tax. National General Armament Department and Armament Department of different armies enjoy non-taxation price for military products, therefore, the tax occurred from material purchase and process outsource cannot be transferred. The compensation of tax in the sale of non-taxation military product cannot be realized, which leads to the fact that the value-added tax finally become part of the product cost. Consumers are not paying all the tax and military enterprises pay it instead, which increases the product cost and capital cost of the company. So it seems particularly important about how to take taxation plan for military enterprises value added tax. Based on conception and significance introduction of enterprise taxation plan, this paper explains the current status and exist problem during taxation plan and development; introduce some common value added taxation plan methods in detail; summarize the problems need to be pay attention to during enterprises value added taxation plan; plan and discuss the tax-free product value-added tax in military enterprise group based on actual business and strategy. The purpose:Firstly, planning for simultaneously non-taxable items to reduce capital cost of enterprise; secondly, planning to reduce input VAT, increase tax refund, reduce production cost and capital cost of enterprise, improve enterprise profitability for tax-free products through service aspect, like production, purchase, and registration district, etc.; thirdly, provide some actual operations and methods which have reference during enterprise VAT taxation plan.