What is the difference between zero tax rate and tax exemption for tax agents?
1. Different tax principles
The zero tax rate represents the tax obligation, but because the tax rate is "zero", when calculating and paying VAT, the output tax is calculated at the tax rate of 0%, and the input tax is allowed to be deducted.
Tax exemption means exemption from tax obligation, but only a certain part of the tax is exempted, not all, and input tax is not allowed to be deducted.
2. Different accounting methods
Zero tax rate
Input tax with zero tax rate can be deducted, which involves the refund of input tax.
At the same time, the sales of goods with zero tax rate are included in the total sales, and the output tax is 0.
Therefore, the commodity input tax with zero tax rate needs to be accounted for, and the output tax does not need to be accounted for.
exempt from taxation
Input tax is not allowed to be deducted, and is directly included in the cost of goods in accounting.
When selling duty-free goods, only ordinary invoices can be issued, and the income is included in the sales income, and the output tax is not calculated.
Therefore, the input tax and output tax of duty-free goods do not need to be accounted for.
3. Different scope of application
4. Different tax management requirements
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