Input tax: value-added tax arising from the purchase of goods.

Relationship: the essence of output tax is the tax paid by the seller for the buyer, that is, this part of tax has been included in the sales. On the other hand, the input tax is the tax payable by the buyer and paid to the supplier together with the price.

How to deduct: Before the end of the month, upload the corresponding special VAT invoice or special customs payment book on the national tax website for input certification, and the certified invoice can be used as the deduction for next month's output. When reporting in the next month, if the input tax amount is less than the monthly output tax amount, the difference shall be declared and paid as the taxable amount; If the input tax is greater than the output tax in the reporting month, the rest will be used as the retained input for subsequent output deduction.

Extended data:

Value-added tax is a tax levied on the value-added of units and individuals who sell goods or provide processing, repair and replacement services and import goods. Value-added tax has become one of the most important taxes in China, accounting for more than 60% of all taxes in China, and it is the largest tax. Value-added tax is levied by the State Taxation Bureau, and 50% of the tax revenue comes from the central government and 50% from local governments. The import value-added tax is collected by the customs, and all the taxes are the central fiscal revenue.

As VAT is subject to the system of tax deduction with special VAT invoices, it requires taxpayers to have a high level of accounting, which requires accurate accounting of output tax, input tax and tax payable. But the reality is that many taxpayers can't meet this requirement, so the Provisional Regulations on Value-added Tax in People's Republic of China (PRC) divides taxpayers into general taxpayers and small-scale taxpayers according to their business scale and sound accounting.

general taxpayer

(1) Taxpayers who produce goods or provide taxable services are mainly taxpayers who produce goods or provide taxable services (that is, the annual sales of taxpayers' goods or provide taxable services account for more than 50% of taxable sales) and concurrently engage in wholesale or retail of goods, with annual taxable sales exceeding 500,000;

(two) engaged in the wholesale or retail business of goods, the annual taxable sales of more than 800 thousand yuan.

Small-scale taxpayer

(1) Taxpayers engaged in the production of goods or providing taxable services, and taxpayers whose main business is the production of goods or providing taxable services (that is, the annual sales of taxpayers' goods or services account for more than 50% of the annual taxable sales) and concurrently engage in the wholesale or retail of goods, with the annual taxable sales (hereinafter referred to as taxable sales) below 500,000 yuan (inclusive).

(2) Taxpayers other than those mentioned above have an annual taxable sales of less than 800,000 yuan (inclusive).

References:

Baidu encyclopedia: value-added tax