It means that two standards must be met before deduction can be made.

The so-called deduction refers to the offset of input and output tax of value-added tax. Value-added tax is a tax levied by the state on added value.

If you are an ordinary taxpayer, when you buy goods for 1 yuan (if the seller can provide a VAT invoice), the party that gave you the goods will charge you 0.17 on behalf of the tax bureau. yuan in taxes.

You have to pay 1.17 yuan to the party who sold you the goods. When you sell a 1 yuan product for 1.2 yuan (or process it into other products and sell it for 1.2 yuan), you have to charge 1.2*0.17 to the buyer on behalf of the tax bureau. =0.204 yuan tax.

The actual tax amount you pay is 0.204-0.17=0.034 yuan. 0.17 yuan is called input tax. 0.204 yuan is called output tax. The process of using 0.17 yuan to deduct 0.204 yuan is called input tax deduction. The prerequisite for deduction is that you are a general taxpayer and have certified input tax. If the deduction is not completed in the current month, it can be deducted later.