Value-added tax (VAT) is a turnover tax levied on the basis of the value-added amount of goods in circulation, which is collected by the State Taxation Bureau. 50% of the tax revenue is from the central government and 50% is from local governments.
In practice, it is difficult to accurately calculate the added value or added value of commodities in the process of production and circulation. Therefore, the method of tax deduction is widely used in the world. That is, according to the sales of goods or services, the sales tax is calculated at the prescribed tax rate, and then the value-added tax paid when obtaining the goods or services, that is, the input tax, is deducted, and the difference is the tax payable for the value-added part. This calculation method embodies the principle of taxation according to value-added factors.
The collection of value-added tax usually includes all links in the process of production, circulation or consumption. It is a neutral tax based on the value-added amount or price difference. Theoretically, it includes all agricultural industries (planting, forestry and animal husbandry), mining, manufacturing, construction, transportation and commercial services, etc., or all links of raw material procurement, manufacturing, wholesale, retail and consumption.
The scope of VAT collection is as follows:
1, the change from business tax to value-added tax mainly involves the transportation industry and some modern service industries;
2. Transportation includes land transportation, water transportation, air transportation and pipeline transportation;
3. Modern service industry includes R&D and technical services, information technology services, cultural and creative services, logistics auxiliary services, tangible movable property leasing services and forensic consulting services.
Productive value-added tax means that when collecting value-added tax, only the tax of that part of the means of production that belongs to non-fixed assets can be deducted, and the tax contained in the value of fixed assets is not allowed to be deducted. The tax object of this type of value-added tax is roughly equivalent to GDP, so it is called production value-added tax.
Announcement on Issues Concerning the Collection and Management of the Policy of Exempting Small-scale Taxpayers from Value-added Tax Article 3 Small-scale taxpayers who pay taxes with a fixed term may choose 1 month or 1 quarter as the tax term, and once they choose, they may not change it within one fiscal year.