Stock allowance refers to the process in which the taxpayer compares the tax allowance at the end of the current period with the tax allowance at the end of the VAT period on March 3, 20 19, and then refunds the tax to the party with a smaller tax amount. Incremental allowance refers to the process of tax refund for the newly increased part or the current period-end allowance after comparing the current period-end allowance.

Incremental tax allowance:

1, before the taxpayer obtains the one-time stock tax rebate, the incremental tax allowance is the newly increased tax allowance at the end of the current period compared with March 3, 20 19.

2. After the taxpayer obtains the one-time stock tax credit, the incremental tax credit is the tax credit at the end of the current period.

Stock tax allowance:

1, before the taxpayer obtains the one-time stock tax rebate, if the current period-end tax allowance is greater than or equal to the period-end tax allowance of 201March 3, 91day, the stock tax allowance is 201March 3, 9/day; If the current period-end tax allowance is less than 201March 3, 91day, the stock tax allowance is the current period-end tax allowance.

2. After the taxpayer obtains the one-time stock tax credit, the stock tax credit is zero.

The Ministry of Finance and State Taxation Administration of The People's Republic of China jointly issued the policy of fully refunding the value-added tax allowance from July 1 day, and extended it to seven new industries (including individual industrial and commercial households), including wholesale and retail, agriculture, forestry, animal husbandry, fishery, accommodation and catering, residents' service, repair and other services, education, health and social work, culture, sports and entertainment. Micro-enterprises can apply to the competent tax authorities for a one-time refund of the remaining tax credits from the tax declaration period in April 2022.

Legal basis:

Announcement of the Ministry of Finance and the State Administration of Taxation on Further Strengthening the Implementation of the Tax Refund Policy at the End of VAT Period

(1) Before the taxpayer obtains the one-time stock tax rebate, the incremental tax allowance is the newly increased tax allowance at the end of the current period compared with 201March 3, 91day.

(2) After the taxpayer obtains the one-time stock tax rebate, the incremental tax allowance is the tax allowance at the end of the current period.