The State Council abolished the business tax regulations and amended the VAT regulations.

Li Keqiang, premier of the State Council, chaired the executive session of the State Council on October 30th, through the deepening of the "Internet + Advanced Manufacturing" development of industrial Internet guidance, to promote the revitalization of the real economy and accelerate transformation and upgrading. The draft decision of the Provisional Regulations of the People's Republic of China on Value Added Tax promotes the legalization of the results of the business reform and increase reform.

The meeting pointed out that the implementation of the nineteen spirit of the party and the construction of a modern economic system should take the structural reform of supply side as the main line, and accelerate the construction and development of the industrial Internet combined with the implementation of "made in China 2025" and "Internet +", so as to promote the deep integration of the new generation of information technology and manufacturing industry, which will promote the transformation of the real economy. It is of great significance to upgrade the digital economy and build a strong manufacturing power and powerful network. First, we must create an environment conducive to the vigorous development of the industrial Internet. We will deepen the reform of simplifying government and decentralizing power, combining deregulation with optimization of services, relax restrictions on access to integrated products and services, expand the scope of equal access for market participants, and implement inclusive and prudent supervision. We should support and encourage enterprises to develop bonds, equity financing and social capital investment, and innovate financial services through fiscal and taxation policies, so as to promote the development of "Internet + Advanced Manufacturing". Two, we must vigorously promote the construction of internal and external networks of industrial enterprises. Supporting enterprises with the ability to develop large-scale industrial cloud platform, realizing the extensive interconnection and intercommunication of all kinds of production equipment and information systems, breaking the "information island" and promoting the integration and sharing of manufacturing resources and data. Docking personalized, customized needs, to carry out collaborative design, crowdsourcing, cloud manufacturing and other innovative applications. Three, we need to increase government support for basic network construction. By 2020, we will basically complete the upgrade and transformation of the next generation Internet for advanced manufacturing industries and the construction of supporting management capacity. We will further promote the cost reduction and speed up of private SMEs. We should improve laws, standards, identification and other systems. We will guide enterprises to improve their network security capabilities and promote research and development of products and technologies such as attack protection, vulnerability detection, security audit, and trusted chips. The network and platform security management and technical system will be built around key manufacturing areas such as automobile, electronics, energy, aerospace and so on. We will intensify key common technologies, accelerate the R&D and industrialization of industrial wireless and low-power WAN products, and promote the application of new frontier technologies such as artificial intelligence and large data. Four, we must rely on the industrial Internet to promote open and integrated development. Promote the cross-border financing of primary, secondary and tertiary industries, large and medium-sized enterprises, support the business system of small and medium-sized enterprises to move to the cloud, and form a multi-level public platform to serve the masses of entrepreneurship and innovation. We should promote open cooperation and encourage domestic and foreign enterprises to cooperate closely across fields and across the whole industry chain. Simplify certification, reduce fees, and so on, absorb talents, and increase professional personnel training. Promote the development of intelligent, green advanced manufacturing industry.

The meeting pointed out that after the approval of the legal procedure, the pilot project of business tax reform has been launched in an all-round way, and the VAT has been levied uniformly in the service sector where business tax was originally implemented. In fact, the business tax which has been implemented for more than 60 years has been completely abolished, and the interim business tax regulations have actually been suspended. In order to consolidate and expand the results of tax reduction in the business reform, it is necessary to amend the relevant laws and regulations and to re-establish them in the form of laws and regulations. The meeting adopted the Decision of the State Council on the Abolition of the Interim Regulations of the People's Republic of China on Business Tax and the Amendment of the Interim Regulations of the People's Republic of China on Value Added Tax (Draft). The business tax shall be abolished in an all-round way, the scope of VAT taxation shall be adjusted and improved, and the units and individuals that sell services, intangible assets and real estate shall be stipulated as VAT taxpayers, and the corresponding tax rates shall be defined. According to the cancellation of the 13% VAT rate, the tax rate on the sale or import of grain, books, feed and other goods was reduced from 13% to 11%. At the same time, the transitional policy implemented in some industries remains unchanged. In view of the actual needs of further deepening the reform, the draft makes it clear that the State Council or, with the consent of the State Council, the competent departments of Finance and taxation shall make separate provisions on matters relating to the payment of VAT by taxpayers, which shall be implemented in accordance with its provisions.