The retained VAT in the previous period refers to the undeducted input VAT generated by the enterprise when calculating VAT in the previous period because the output VAT is less than the input VAT. This part of the undeducted input VAT can continue to be declared and deducted in the current period. The following is a detailed introduction to the method of deducting the tax credit of the previous period in the current period.
1. Understand the concept and calculation method of the retained tax credit in the previous period.
First of all, enterprises need to understand the concept and calculation method of the tax credit for the previous period. The retained VAT in the previous period refers to the input VAT that has not been deducted when the enterprise calculates VAT in the previous period. This part of the tax can continue to be declared and deducted in the current period.
2. Check the accuracy of the retained tax credit in the previous period.
Before declaring the current VAT, enterprises need to check the accuracy of the retained tax credit for the previous period. Check the prior period's VAT return and financial statements to see if the amount of the prior period's retained tax credit is correct. If it is found that the amount of retained tax credits in the previous period is incorrect, it is necessary to apply to the tax authorities for correction in time.
3. Fill in the current VAT return.
When filling in the current VAT return, the enterprise needs to fill in the amount of the retained tax credit of the previous period in the corresponding columns. Here's how to fill in the form:
1.Fill in the actual amount of input tax incurred in the current period in the "Input VAT" column of the return;
2.Fill in the undeducted input VAT in the "Retained Tax Credit for the Previous Period" column of the return;
3.The system will automatically calculate the deductible input tax in the current period, including the actual input tax in the current period and the retained tax credit in the previous period
4.Based on the calculation results, fill in the "Output Tax" and "Tax Payable" columns of the return.
4. Submit the return and pay the tax.
After filling out the current VAT return, the enterprise needs to submit the return in accordance with the prescribed time and method and pay the corresponding tax. If the tax payable in the current period is less than the retained tax credit in the previous period, the undeducted input tax will continue to be retained for the next period.
In short, the method of declaring and deducting the retained tax credit in the current period is relatively simple, and you only need to fill in the declaration form and submit it according to the prescribed steps. However, enterprises need to ensure the accuracy of the tax credits for the previous period to avoid tax risks caused by errors. At the same time, enterprises also need to pay attention to the changes in VAT policies, adjust their reporting strategies in a timely manner, and ensure compliance with tax declarations and payments.