In the calculation of VAT, the tax rate and output are two very important concepts. Among them, the tax burden rate refers to the proportion of value-added tax actually paid by the enterprise to the tax authorities in the sales revenue;Output, on the other hand, refers to the amount of VAT charged by the taxpayer to the purchaser. These two indicators have an important impact on the tax situation of enterprises, so they need to be studied and analyzed in depth.
How to reverse the input through the output?
This involves an important principle – the "deduction method". The so-called "deduction method" refers to the situation where the taxpayer compares the input tax obtained by himself with the output tax to determine whether the input transfer or input deduction is required. Specifically, if the taxpayer obtains sufficient input tax, and its output tax is less than or equal to the input tax, it means that the taxpayer does not need to carry out any input transfer or input deduction. On the contrary, if the input VAT obtained by the taxpayer is not enough to offset the output VAT generated, the undeducted part needs to be transferred out or deducted.
First of all, we need to understand how to derive the formula of the tax rate. According to the Provisional Regulations of the People's Republic of China on Value-Added Tax, the basis for VAT is the balance of sales revenue minus costs, expenses and losses. Therefore, we can express the formula for calculating the tax burden rate as follows:
Tax Burden Rate = (Sales Revenue - Input + Output) 100% of Total Sales Revenue
In this formula, sales revenue refers to the operating income achieved by the enterprise in a certain period of time;Input refers to the taxable amount generated by the enterprise from the purchase of raw materials, fuels and other goods or services from the outside;Output is the amount of VAT charged by the company to consumers. Through this formula, we can calculate the tax burden rate of the enterprise.
Secondly, we need to know how to use the concept of sales in practice. Output refers to the amount of VAT collected by the taxpayer from the purchaser. In the process of VAT collection, the taxpayer needs to issue an invoice to the buyer in accordance with the regulations, and indicate the name, quantity and unit price of the goods sold on the invoice. When the buyer obtains the invoice, it can use it to deduct the corresponding input tax, thereby reducing its own tax payable. Therefore, the output is of great significance to the taxpayer's tax behavior.