The State Administration of Taxation issues a new value-added tax rule Yili Guangming Bein United and other dairy companies will benefit

Recently, the State Administration of Taxation issued the “Announcement on the Trial Measures for the Examination and Approval of Certain Value-added Taxes on Input Taxes for Agricultural Products in Certain Industries” (Consultation Draft), stating that the amount of input tax for VAT on agricultural products will be tentatively deducted, and the general input tax deduction rate and sales The tax levy rate, while the pilot industry is the liquid milk and dairy product manufacturing and edible vegetable oil processing industry.

Although it is only an opinion draft, but for the benefit of the industry, has attracted the attention of many parties, brokers have also released a rating report on the income industry, to this end, the "Securities Daily" reporter interviewed relevant listed companies and industry stakeholders, How do they view the new regulations for the VAT tax rate pilot?

No impact on edible oil industry In response to the exposure draft, the Securities Daily reporter conducted a number of interviews and found that, in this tax rate reform, there is no impact on edible oil producers.

As the necessities of daily life, there are only two edible oil companies that are truly on the capital market. They are Dongling Grain Oil and Xiwang Food.

According to the reporter’s review of the State Administration of Taxation, the specific content of the VAT reform mentioned in this consultation draft is that it will take the lead in the liquid milk and dairy product manufacturing and edible vegetable oil processing industries to pilot the deduction method for input tax, and at the same time import agricultural products into the project. The tax deduction rate shall be revised from the current 13% to the applicable tax rate for the goods sold by the taxpayer, that is, if the taxpayer applies a 13% tax rate on the goods sold, the deduction rate is 13%, and the taxpayer applies 17% tax rate on the goods sold. The deduction rate is 17%. According to the policy, those enterprises that meet the conditions are small-packaged edible oil companies.

Xiwang Foods is a small-packaged edible oil production company. Has this policy added new profit growth points to this newly reorganized enterprise?

When interviewed by the "Securities Daily" reporter, Xi Wang Food Director Dong Xinhu stated that "The income tax of input tax and output tax of Xiwang Foods is 13%. The taxation reform proposed by the State Administration of Taxation has no effect on the company. ”

Dong Zhi, the secretary of Dongling Grains and Oils, another edible oil company, gave an answer to the “Securities Daily” reporter in a similar manner to that of Xi Xin Food Director Dong Mi’s answer.

Although the edible oil products of Dongling Grain and Oil are all vats of oil, their tax rate is 13%. "This tax adjustment has no effect on our business." Shige Yan told reporters.

Dairy products companies will benefit According to the "Securities Daily" reporter, the majority of China's agricultural product processing companies implement the tax rate standard of 13% for purchases, and 17% for sales. This means that when a company purchases raw materials, it mainly deducts the input tax of 13%, but at the time of selling the products, it imposes a sales tax of 17% on the value-added tax rate. More than 4 percentage points of VAT tax burden, if this adjustment in accordance with the implementation of a unified tax rate, then the company will bring about a few points of gross profit growth.

In other words, if the tax rate is 13% for the advance tax and 17% for the output tax, after the new regulations are implemented, the input tax rate will be 17%. According to the deduction method of input tax and output tax, we can see that the new regulations can directly bring the company a few points of gross profit margin. For example, in the past, the tax deducted was the amount of the product purchased multiplied by 13%, and after the new regulations were implemented, the calculated standard was the amount of the purchased product multiplied by 17%/(1+17). If the purchase amount is 100 yuan, then according to the new regulations, the company will increase the gross profit margin by 1.5.

If the new regulations are really implemented, dairy companies are the only beneficiaries, so the standards they currently implement are not yet unified.

The reporter reviewed the annual reports of relevant dairy companies and saw that most of the value-added tax rates implemented by enterprises in input and output taxes were 13% or 17%, and the implementation standards for liquid milk and milk powder products were different.

In addition, this time the State Administration of Taxation issued a draft of the consultation also clearly pointed out that the modulation of milk because it does not belong to primary agricultural products, sales tax rate is 17%; pasteurized milk and sterilized milk because of primary agricultural products, sales tax rate is 13% .

In many dairy companies, the standards of implementation vary. For example, Bein Mei (36.03, 0.34, 0.95%), who has just stepped into the capital market, was engaged in R&D, production, and sales of baby foods. Beinmei, a dairy product company, entered the small and medium-sized board in April this year. The company’s prospectus shows that The value-added amount generated by the company's current sales of goods or providing taxable services is 17%.

When Bein Mei’s secretary-general Liu Huiyu was interviewed by an “Securities Daily” reporter, he said he also saw the consultation draft of the State Administration of Taxation. When asked whether the reporter has a direct interest in the company, Liu Huiyu said that if the VAT standards are actually implemented in accordance with the new regulations, the company will enjoy several points of tax rate, which will bring direct benefits to the company.

Zhou Sianran, a food analyst at China Investment Consulting Group, said in an interview with reporters that the implementation of the new regulations means that it is good for the milk companies that account for about 60% of the total.

Affected by the good news, dairy listed companies have performed outstandingly in the secondary market recently. Bright dairy, Yili, and Bein and other US dairy companies have all seen their stock prices skyrocket over the next few days, which is in stark contrast to the broader market.