The meaning of deducting the input tax from the output tax is that when a product is sold, the output tax should be paid. When a product is purchased, input tax will also be generated, that is to say, the output tax will be deducted from the output tax. The amount of item tax minus input tax is the value-added tax payable for the month.

Extended information:

1. Deductible input tax:

The added value stated on the special VAT invoice obtained from purchasing goods or receiving services taxes. The value-added tax stated on the tax payment certificate obtained from the customs for imported goods, agricultural products purchased from agricultural producers, or agricultural products purchased from small-scale taxpayers can be deducted based on the purchase price multiplied by a deduction rate of 13%. The calculation formula for input tax is: the amount of input tax allowed to be deducted = purchase price , insurance premiums and other miscellaneous expenses) multiplied by the deduction rate of 11% to calculate the input tax deduction, the calculation formula is: input tax allowed to be deducted = freight × deduction rate

Purchased waste materials recycling business unit For tax-free waste materials sold, the input tax can be deducted based on the amount stated on the ordinary invoice issued by the waste material recycling business unit and supervised by the tax authority, multiplied by 10%.

2. Input tax cannot be deducted:

1. Value-added tax paid for purchased goods or taxable services for non-taxable items, used for collective welfare or personal benefits Value-added tax paid for consumption of purchased goods or taxable services, value-added tax paid for purchased goods or taxable services used for tax-free items, and value-added tax included in purchased goods with abnormal losses.

2. Abnormal loss of products in progress and finished goods, the value-added tax included in the purchased goods or taxable services consumed, the failure to obtain and keep the value-added tax deduction certificate, and the value-added tax deduction The tax voucher was not submitted to the tax authorities for anti-counterfeiting certification within the prescribed period or the certification failed, and the input tax was not claimed within the prescribed period

Baidu Encyclopedia-Output Tax

Baidu Encyclopedia-Input Tax