Now suppose Party A is a general taxpayer. Party A has already sold the purchased goods and issued the invoice, now it must obtain the VAT special invoice from the supplier, i.e., C. Otherwise, no deduction can be made, and the VAT will be paid to the State Administration of Taxation (SAT) in accordance with the tax amount on the VAT special invoice issued to Party B in the same month.
The current law stipulates that the monthly VAT payable by a general taxpayer is the difference between the output VAT minus the input VAT (assuming that there is no transfer of input VAT from A), the output VAT is the VAT on the invoice issued by A to B, and the input VAT is the VAT on the invoice issued by C to A. Now, if C does not issue the invoice to A, the VAT on the invoice will be deducted from the VAT. Now if C does not invoice A, the input tax is now zero and the full output tax is to be paid.
2, input tax credit allowed from output tax:
1, the amount of VAT stated on the VAT invoice obtained from the seller;
2, the amount of VAT stated on the duty-paid certificate obtained from the customs.
3. The input tax on agricultural products purchased by a general VAT payer from a small-scale taxpayer or tax-exempt agricultural products sold to an agricultural producer shall be calculated on the basis of the purchase price and a 13% deduction rate.
The formula for calculating input tax: Input tax = purchase price x deduction rate (purchase price is based on the amount stated in the general invoice or purchase certificate).
3, VAT invoices can be issued if the input amount is less than the output amount.
4, tax payable for the month = output amount (excluding tax) * tax rate.
Output tax amount=output amount excluding tax*0.17.
Input tax creditable for this period=output tax amount - tax payable for this month.
The maximum difference between input and output amount is not more than 5% of the input tax amount.