Tax refund refers to the value-added tax that cannot be deducted temporarily, but can be deducted from the "input" value-added tax for early tax refund in the future. This happens because the input tax is greater than the output tax. There are two ways to deal with the tax allowance: carry it forward to the next period, continue to deduct it in the current period and apply for tax refund.
1. What do you mean by tax refund?
The scientific name of tax refund is "VAT refund preference", which refers to the full refund of "input" VAT that cannot be deducted now and can be deducted later. The tax allowance can be simply understood as the tax allowance when the input tax is greater than the output tax. Input tax refers to the value-added tax paid by taxpayers when they buy goods, intangible assets or real estate. Output tax refers to the value-added tax charged at the time of sales. Generally speaking, there are many reasons for the formation of tax exemption, such as concentrated investment and long commodity production cycle.
Second, the treatment method of tax allowance
There are generally two ways to deal with the retained tax internationally: allowing taxpayers to carry it forward to the next period for further deduction or applying for tax refund in the current period. At the same time, countries or regions that allow tax refund will also set stricter tax refund conditions accordingly, such as the tax allowance must reach a certain amount; You can only apply for a tax refund once a year or a period of time; Only certain industries are allowed to apply for tax refund.
It is mainly caused by the inconsistency of taxpayers' input tax and output tax in time, such as centralized procurement of raw materials and inventory, which has not yet fully realized sales; No income during the investment period, etc. It is suggested that when multiple tax rates coexist, the applicable tax rate for sales is lower than the applicable tax rate for input, and tax exemption will also be formed.
3. What is the tax refund process?
Tax Refund Process: An enterprise that submits relevant documents for examination and obtains the registration form shall, within 30 days after obtaining the documents approved by the relevant departments for handling export products and the industrial and commercial registration certificate issued by the administrative department for industry and commerce, go through the tax refund registration for export enterprises. After receiving the Tax Refund Registration Form for Export Enterprises, the enterprise applying for accepting the tax refund registration shall fill it in according to the registration form and relevant requirements, affix the official seal of the enterprise and the seal of the relevant personnel, and submit it to the tax authorities together with the approval documents for the right to operate export products, industrial and commercial registration certificates and other supporting materials. After verification by the tax authorities, the registration shall be accepted. After receiving the formal application from the enterprise, the tax authorities that issued the export tax refund registration certificate will issue the Export Tax Refund Registration Certificate to the enterprise after examination and approval according to the prescribed procedures. Change or cancellation of export tax refund registration When the business conditions of enterprises change or some tax refund policies change, the tax refund registration should be changed or cancelled according to actual needs.