Tax refund for tax retention belongs to an economic term, and its scientific name is "VAT tax rebate concession for tax retention", which means that the "input" VAT that cannot be deducted now but can be deducted in the future will be fully refunded in advance.

Simply put, the tax allowance will appear when the input tax is greater than the output tax. Tax refund is to refund the tax amount that has not been deducted at the end of the VAT period to the taxpayer. Value-added tax is a chain deduction mechanism, with the balance of the taxpayer's current output tax deducted from the input tax as the taxable amount. Among them, the output tax refers to the value-added tax calculated according to the sales volume and the applicable tax rate; Input tax refers to the value-added tax paid for purchasing raw materials. Therefore, when the input tax amount is greater than the output tax amount, the input tax amount that has not been deducted will form a tax allowance.

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? formative factor

Generally, it is caused by the inconsistency between the taxpayer's input tax and the output tax, such as centralized procurement of raw materials and inventory, but not all sales have been realized; Or no income during the investment period, and so on. In addition, in the case of coexistence of multiple tax rates, when the applicable tax rate for sales is lower than the applicable tax rate for input, the tax allowance will also be formed.

? meaning

Tax refund is an important measure to implement large-scale tax reduction and fee reduction policy. The implementation of the tax refund policy will help alleviate the financial pressure of enterprises in some areas, support enterprises to expand investment to a certain extent, and promote the upgrading of technology and equipment, which can more effectively stimulate market vitality and promote high-quality economic development.