On the morning of September 16, the first batch of raw materials purchased by Hunan Fei Le Er Intelligent Technology Co., Ltd. from Xiangtan CBZ (“Fei Le Er”) as a general taxpayer in China entered CBZ by customs registration, marking the opening of the VAT general taxpayer tax business in Xiangtan CBZ.
Fei Le Er is a new enterprise established in Xiangtan CBZ. It is mainly engaged in the research & development and production of electronic communication equipment and toys. It was put into operation on September 1, 2020, and it is also the first enterprise in Xiangtan CBZ to apply for general taxpayer qualification. Xiangtan CBZ was approved on December 27, 2019 to carry out the VAT general taxpayer qualification business. After applying for the general taxpayer qualification, enterprises in the CBZ can directly issue VAT invoices when they sell goods to other enterprises in China and enjoy the benefits brought by the reform of “replacing business tax with VAT”, which is good for enterprises to better use international and national resources.
Under the global outbreak of COVID-19, foreign market demand shrinks and the comprehensive cost rises, which make the processing trade of export-oriented enterprises in the CBZ become increasingly difficult. Therefore, it is urgent for those enterprises to purchase materials from and sell products to the domestic market to seek development. The implementation of general taxpayer policy in Xiangtan CBZ further optimizes its functions and policies, fundamentally solves the problem of the high cost of sale in domestic market. In addition, it is conducive to the industrial upgrading and diversification of business forms in the CBZ, allows enterprises to expand domestic market, better use domestic and international markets and resources, and effectively solve the isolation of domestic and international markets.
