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How to explain the tax purpose of low gross profit margin of building materials?
The price of raw materials rose, and the ending inventory increased.

1, the price of raw materials has increased. Compared with last year, the prices of building materials and raw materials rose, while the profit rate declined.

2. The increase in inventory at the end of the period affects the realization of value-added tax. The increase of inventory and the decrease of sales will affect VAT.