Legal analysis: VAT can be divided into output tax and input tax. The value-added tax at the time of purchase is called input tax, and the value-added tax at the time of sale is called output tax. When calculating the tax payable at the end of the period, if the output tax is greater than the input tax, it is required to pay tax; if the output tax is less than the input tax, it is not required to pay tax, and the input tax that has not been deducted can be deducted for the next period. The input tax that these taxpayers have not deducted from the output tax and will be deducted in the next period is called "retained" value-added tax allowance, which refers to the value-added tax amount that cannot be deducted due to the mismatch between the input and output of value-added tax in the business process of the enterprise, and can be deducted when the sales are realized in the future.

Legal basis: Article 14 of the Individual Income Tax Law of People's Republic of China (PRC), the tax withheld by withholding agents every month or every time shall be turned over to the state treasury within 15 days of the following month, and a declaration form for withholding individual income tax shall be submitted to the tax authorities.

Where a taxpayer or withholding agent handles the tax refund for the taxpayer, the tax authorities shall, after examination, handle the tax refund in accordance with the relevant provisions on treasury management.