VAT is the main tax for businesses, and it is only taxed on the value added of goods or services of the enterprise. The amount of tax levied is the amount of VAT paid in the current period after deducting the output tax. Input VAT Deduction Due to the complexity of the actual economic business, it is not possible for any industry to use the output tax after deducting the input tax to determine the VAT amount. So when VAT is deducted,It is divided into four forms: voucher deduction, deduction according to expenditure, approved deduction and non-deduction。Among them, non-deductible and voucher deduction are the main forms of VAT input tax credit.
Voucher deduction refers to the VAT deduction with input invoices, customs vouchers, purchase invoices, passenger tickets, and other tax-inclusive deductible vouchers, starting from January 1, 2018, regardless of whether the purchase is fixed assets, intangible assets, inventory, or services. As long as the VAT deduction requirements are met, whether it is a multi-year asset or not, whether it has been **. Input VAT can be deducted as a one-time output tax in the current period of purchase.
1. Input tax invoices and purchase invoices.
Input tax and purchase invoices can be queried in the invoice system before deduction. When deduction is required, check the current period of deduction and select deduction to deduct the current output tax. It should be noted that the input tax used for employee welfare, business entertainment, and duty-free goods cannot be checked for deduction, but should be selected not to be deducted. If the loss of fixed assets or inventory is caused by management reasons, the input tax corresponding to the loss shall also be transferred out.
2. Tickets, air tickets, etc
It can be used as a voucher for input tax deduction and output tax, and when calculating the deduction of output tax, it is divided into two types: certified deduction with vouchers and calculated deductions with vouchers. The certification deduction with the invoice is based on the VAT amount recorded on the invoice to offset the output tax. This deduction is the most common form of VAT deduction. Calculation of deduction by ticket refers to the calculation of the deductible amount according to a certain proportion according to the ** indicated on the bill. For example, input tax credit vouchers such as passenger tickets and air tickets do not have VAT on the face value, and VAT needs to be calculated according to the face of the ticket. Such as train ticket input tax tax calculation formula:
Input tax= par amount (1+9%) 9%.
If the simple tax calculation mode is adopted, the input tax cannot be deducted from the output tax, and the input tax is included in the relevant cost together with the services or goods purchased. The common simple tax calculation modes that cannot be calculated by the difference include tax calculation for small-scale taxpayers and simple tax calculation for special industries. Under normal circumstances, the tax amount of this tax is 3%, and after enjoying the preferential policy, it is exempt from tax or levied at 1%.
The so-called deduction is based on the amount of business expensesRefers to the difference in taxation under the input tax deduction。Strictly speaking, there is no input tax on the difference tax, but the balance after deducting the deductible expenses recognized by the tax department when calculating sales is the sales amount. The tax calculation formula for the levy of the difference:
The amount of VAT payable in the current period= (Output - Deductible Expenses) Tax rate.
Entries for deducting "input tax" under the difference tax:
Borrow: main business income (negative red).
Debit: Tax Payable - VAT Payable - Simple Tax Calculation.
PS: Under the difference tax, the difference tax invoice issued is issued in full according to the sales amount. Enterprises that receive VAT invoices for differential taxation can deduct the full amount of VAT recorded on the invoice. After receiving the VAT invoice, the enterprise that adopts the differential tax calculation shall deduct the total tax price as a deductible expense after receiving the VAT invoice.
In some agricultural product processing industries, especially when it comes to self-produced tax-free agricultural products, when processed into value-added tax taxable goods, the input tax is difficult to obtain, and if the verification and collection are not adopted, the value-added tax of this type of enterprise will be very high. Therefore, China has withdrawn from a special input tax deduction method - input tax verification and deduction. For example, general VAT taxpayers who produce and sell liquid milk and dairy products, wine and alcohol, vegetable oil, slaughtering, and production of fresh meat food with the purchase of agricultural products as raw materials shall use the cost method to calculate the input VAT amount.
Input tax is deductible for the current period= Amount of goods sold, Commodity cost rate, Tax rate.