1. tax supervision: the tax authorities need to supervise and manage the tax payment behavior of enterprises, including the calculation and transfer of input tax. By requiring the cumulative amount to be reported every month, the tax authorities can fully understand the tax payment situation of enterprises and ensure that enterprises declare and pay taxes according to regulations.
2. Tax inspection: The tax department needs to check whether the input tax amount of the enterprise is consistent with the output tax amount, so as to ensure that the sales and procurement behavior of the enterprise are true and legal, and avoid false invoicing and tax evasion. The tax authorities can check and audit the tax returns of enterprises through the accumulated input tax carried forward.
3. Accuracy of tax payment: Filling in the transferred input tax on a monthly basis can ensure the accuracy of enterprise tax returns. Enterprises fail to declare truthfully or fill in the input tax transfer amount incorrectly, which will lead to inaccurate tax declaration, and then face fines and penalties from tax authorities.
4. Tax convenience: fill in the amount of input tax transferred out on a monthly basis, which is convenient for enterprises to conduct tax management and accounting. Enterprises can record and master the changes of input tax in time for financial analysis and decision-making.