Do you often hear the saying that companies need to collect more invoices, which can be used to deduct taxes and reduce tax burdens? But do you really understand what invoice tax deductions mean? How does invoice tax deduction work? What is the process of invoice tax credit? What are the considerations and risks of invoice tax deductions? If you are interested in these questions, then this article is for you. This article will analyze the relevant knowledge of invoice tax deduction for you from a professional perspective and in popular language, so as to help you better understand and use invoice tax deduction, save costs and improve efficiency for your enterprise.
1. What is invoice tax credit?
Invoice tax credit refers to a preferential tax policy in which an enterprise obtains an invoice from the seller when purchasing goods or services, and uses the tax amount contained in the invoice as input tax to offset the output tax payable when selling goods or services, thereby reducing the tax payable. Invoice tax credit is mainly applicable to general VAT taxpayers, that is, enterprises with annual sales of more than 5 million yuan. General VAT taxpayers can use special VAT invoices for deduction, or they can use some ordinary invoices for deduction, depending on the content and type of invoices.
2. What is the principle of invoice tax credit?
The principle of invoice tax deduction is based on the VAT tax calculation method. Value-added tax (VAT) is a turnover tax levied on the value of goods or services that an enterprise adds to the value of goods or services in the process of production, circulation and consumption. The VAT calculation formula is: tax payable = output tax - input tax. Output VAT refers to the amount of tax payable by an enterprise at the prescribed tax rate when selling goods or services. Input VAT refers to the amount of tax that has been paid by an enterprise when it purchases goods or services. Invoice tax deduction is to use input tax to offset output tax, so as to reduce the tax payable.
3. What is the process of invoice tax credit?
The process of invoice tax deduction can be roughly divided into the following steps:
1.Invoicing: When a business purchases goods or services, it should request an invoice from the seller and ensure the legitimacy and compliance of the invoice. The invoice should contain complete information, such as the name, tax number, address, bank and account number of the seller and the buyer, as well as the name, specification, quantity, unit price, amount, tax rate and tax amount of the goods or services. Invoices shall be kept for inspection at the prescribed time and in the manner specified.
2.Certified invoice: After receiving the invoice, the enterprise should conduct certification to confirm its authenticity and legitimacy. There are two ways of authentication, one is through the electronic tax bureau of the tax authority or the mobile app, and the other is through the tax control equipment for offline authentication. Certification is time-limited and is generally completed within 180 days from the date of invoice. After the certification is successful, the input VAT of the invoice can be deducted.
3.Tax deduction: In accordance with the provisions of national tax laws and regulations, enterprises will use eligible invoices as deduction vouchers to reduce the tax payable. There are two ways to deduct, one is automatic deduction through tax control equipment, and the other is manual deduction through the electronic tax bureau** or mobile app. The deduction has a limited time limit and is generally completed within 360 days from the date of invoice certification. After the deduction is successful, the enterprise should declare and pay the VAT on time.
4. What are the precautions and risks of invoice tax credit?
Although invoice tax deductions can save businesses on taxes, they are not arbitrary, and certain rules and conditions need to be followed, otherwise it may cause unnecessary troubles and losses. Here are some things to look out for and the risks to look out for:
Not all invoices are deductible. Only special VAT invoices and some ordinary invoices can be deducted, and it also depends on whether the content and type of the invoice meet the conditions for deduction. For example, the purchase of fixed assets, intangible assets, immovable property and other items dedicated to collective welfare, as well as the purchase of tax-exempt agricultural products, are not eligible for input tax.
Not all taxes are deductible. Only the tax amount stated on the invoice can be deducted, and it depends on whether the tax amount has been paid to the seller. For example, if the tax amount is not stated on the invoice, or the tax amount stated on the invoice is inconsistent with the actual tax paid, or the tax amount stated on the invoice has been refunded by the seller to the buyer, etc., the input tax amount shall not be deducted.
Not all times are deductible. Only after the verification and deduction are completed within the specified time can the deduction be deducted, otherwise the deduction qualification will be lost. For example, if the invoice has not been authenticated for more than 180 days, or the invoice has not been deducted for more than 360 days, or the invoice has expired, the input tax shall not be deducted.
Not all methods are deductible. Only authentication and deduction can be made through the specified methods, otherwise it will cause data inconsistencies or information leakage. For example, if the invoice is authenticated and deducted through illegal channels or software, or if the invoice is reused or transferred many times, the input tax shall not be deducted.
Conclusion
Invoice tax credit is a legal and reasonable preferential tax policy, which can save costs and improve efficiency for enterprises. However, invoice tax deduction is not a simple matter, you need to comply with certain rules and conditions, pay attention to some matters and risks, otherwise it may bring unnecessary troubles and losses to the enterprise. If you have any other questions about the tax deduction of the company's invoice, please leave a message in the comment area, and I will answer it for you as soon as possible. Thank you for reading and following!