The concept of value-added tax: Value-added tax is a tax levied on the value-added amount obtained by units and individuals who sell goods or provide processing, repair and replacement services and import goods within the territory of the People's Republic of China.

Characteristics of value-added tax:

1. Take the value-added amount as the tax object. From the taxation object, no matter how different the legal value-added amount is in different countries, the value-added tax is based on the value-added amount rather than the full sales amount. Taking the value-added tax as the tax object is the most basic feature of value-added tax.

2. Implement universal taxation. Whether viewed horizontally or vertically, it has a broad tax base. From the perspective of the horizontal relationship between production and operation, no matter industrial, commercial or labor service activities, as long as there is value-added income, tax will be paid; From the vertical relationship between production and operation, no matter how many production and operation links each commodity goes through, it should be taxed according to the value-added amount that occurs in each link.

3. Implement multi-link taxation. From the aspect of tax payment, value-added tax is taxed in multiple links, that is, it is taxed separately in various business links such as production, wholesale, retail, labor service provision and import, rather than only in a certain link.

function: it can avoid repeated taxation and fully implement the principle of fair tax burden.

Value-added tax is a turnover tax based on the value-added amount of goods (including taxable services) generated in the process of circulation. From the taxation principle, value-added tax is a kind of turnover tax levied on the added value of many links in commodity production, circulation and labor service or the added value of commodities. Extra-price tax is implemented, that is, it is borne by consumers, and tax is levied only if there is value added, and tax is not levied if there is no value added.

value-added tax is a tax levied on the value-added realized by units and individuals who sell goods or provide processing, repair and replacement services and import goods. Value-added tax has become one of the most important taxes in China, accounting for more than 6% of all taxes in China, and it is the largest tax. Value-added tax is collected by the State Taxation Bureau, and 5% of the tax revenue is from the central government and 5% from local governments. The value-added tax in the import link is collected by the customs, and the tax revenue is all the central fiscal revenue.

The Ministry of Finance and State Taxation Administration of The People's Republic of China issued the Notice on Relevant Policies for Degenerate VAT Rate. From July 1, 217, the structure of VAT rate was degenerated, the 13% VAT rate was abolished, and the scope of goods subject to the 11% tax rate and the provisions for deducting input tax amount were clarified.

according to the different ways of tax deduction for outsourced fixed assets, the value-added tax can be divided into:

production-oriented value-added tax:

production-oriented value-added tax means that when collecting value-added tax, only the part of the means of production that belongs to non-fixed assets can be deducted, and the tax included in the value of fixed assets is not allowed to be deducted. The tax object of this type of value-added tax is roughly equivalent to the gross national product, so it is called production value-added tax.

Income-based value-added tax:

Income-based value-added tax means that when collecting value-added tax, only the tax included in the depreciation part of fixed assets is allowed to be deducted, and the depreciation part is not included in the deduction amount. The tax object of this type of value-added tax is roughly equivalent to national income, so it is called income-based value-added tax.

consumption-oriented value-added tax:

consumption-oriented value-added tax means that all taxes included in the value of fixed assets are allowed to be deducted at one time when value-added tax is levied. In this way, the means of production are excluded from the scope of taxation as far as the whole society is concerned. The tax object of this type of value-added tax is only equivalent to the value of social consumption materials, so it is called consumption-oriented value-added tax. Since January 1st, 29, China has implemented consumption-oriented value-added tax in all regions of the country.