Because the tax and the net purchase price in the VAT invoice of the circulation link are not separated in the payment unit. However, the buyer and the user are separated, the taxpayer and the purchaser are separated, and the taxpayer and the invoice owner are separated, which brings a series of problems after the tax reform. The tax burden of financial leasing enterprises is reduced, and the downstream enterprises are deducted and the business scope is expanded, which has a favorable impact on the development of leasing industry in China.

Extended data:

The tax burden reduction of financial leasing enterprises is mainly manifested in: leasing business is included in the scope of value-added tax collection, leasing enterprises can issue special invoices for value-added tax when providing leasing business, and enterprises leasing machinery and equipment can deduct input value-added tax.

At the same time, although the tax rate of 17% is applicable to leasing tangible movable property, the general taxpayers engaged in financial leasing business are provided with financial leasing services for tangible movable property, and the part with the actual VAT tax burden exceeding 3% is subject to the policy of VAT first collection and then return, which greatly reduces the tax burden of financial leasing enterprises.

References:

"camp reform": an opportunity not to be missed in the financial leasing industry-People's Daily Online