Journalism

Note: input tax is not deductible under these circumstances!

2021-05-19

Input tax deduction has always been the input tax, which refers to the value-added tax paid or borne by taxpayers for purchasing goods, processing, repairing and repairing services, services, intangible assets or real estate.


one

General taxpayer

Types of VAT deduction voucher available


1. VAT special invoice

2. Unified invoice for motor vehicle sales

3. Special payment letter for import VAT of Customs

4. Purchase invoice or sales invoice of agricultural products

5. Tax payment certificate of tax paid when obtained from abroad

6. Toll road toll VAT electronic ordinary invoice 

7. Toll invoice of bridge and gate

8. Passenger Transport Certificate

two

Input tax not deductible


1. Small scale taxpayers

(1) In case of taxable sales of small-scale taxpayers, the simple method of calculating the taxable amount according to the sales volume and the collection rate shall be implemented, and the input tax shall not be deducted.Even if the special VAT invoice is received, the input tax can not be deducted.


(2) However, during the period from tax registration to identification or registration as a general taxpayer, if the enterprise fails to obtain the income from production and operation, and fails to simply calculate the amount of tax payable according to the sales volume and the collection rate, and declare and pay the value-added tax, the VAT deduction certificate obtained during this period can be deducted from the input tax after being identified or registered as a general taxpayer.


2. General taxpayers choose simple taxation

(1) General taxpayers who have specific taxable behaviors stipulated by the Ministry of Finance and the State Administration of taxation may choose to apply the simple tax calculation method, but once selected, they shall not be changed within 36 months.


(2) The amount of tax payable in the simple tax calculation method refers to the value-added tax calculated according to the sales volume and the VAT collection rate, and the input tax shall not be deducted.Calculation formula of tax payable: tax payable = sales amount×percentage charges


3. Input tax corresponding to VAT exemption items

(1) Goods purchased, processing, repair and repair services, services, intangible assets and real estate of items exempted from VAT.Input tax shall not be deducted from output tax.

(2) The fixed assets, intangible assets and real estate involved only refer to the fixed assets, intangible assets (excluding other equity intangible assets) and real estate specially used for the above projects.

4. Purchased goods are used for collective welfare

When the products purchased by general taxpayers are used for collective welfare, they shall not be deducted, and the input tax deducted shall be transferred out.


5. Purchased goods for personal consumption

When the products purchased by general taxpayers are used for collective welfare, they shall not be deducted, and the input tax deducted shall be transferred out.Personal consumption includes the social intercourse consumption of taxpayers.


6. Input tax shall not be deducted for abnormal losses

(1) Abnormal losses refer to the cases in which goods are stolen, lost, moldy and deteriorated due to poor management, and goods or real estate are confiscated, destroyed or demolished due to violation of laws and regulations.

The scope of abnormal loss assets includes: purchased goods, and related processing, repair and repair services and transportation services.Purchased goods (excluding fixed assets), processing and repair services and transportation services consumed by products in process and finished products.Real estate and the purchased goods, design services and construction services consumed by the real estate.Purchased goods, design services and construction services consumed by real estate construction in progress.


(2) Normal loss refers to the asset loss caused by force majeure or reasonable loss, which can be deducted from the corresponding input tax.


(3) In case of abnormal loss or change of use, the input tax originally included in the input tax but not deductible according to the current value-added tax system shall be transferred out.

7. Purchased loan services, catering services, residents' daily services and entertainment services


8. Purchase of tobacco and alcohol by non tobacco and alcohol wholesale enterprises

Input tax is not deductible.Commercial enterprises shall not issue special invoices for tobacco, wine, food, clothing, shoes and hats (excluding labor insurance special parts), cosmetics and other consumer goods.


▌ policy basis:

Announcement of the State Administration of Taxation on the deduction of forward tax for taxpayers identified or registered as general taxpayers (Announcement No. 59 of 2015 of the State Administration of Taxation)

Notice of the Ministry of Finance and the State Administration of Taxation on comprehensively promoting the pilot project of replacing business tax with value added tax (CS [2016] No. 36)

Provisional Regulations of the people's Republic of China on value added tax (Order No. 691 of the State Council)

Detailed rules for the implementation of the Provisional Regulations of the people's Republic of China on value added tax

Notice of the State Administration of Taxation on Revising the provisions on the use of VAT special invoices (GSF [2006] No. 156)


three

Change of use of fixed assets


1. When the real estate whose input tax has been deducted is not deductible for the purpose change, the input tax that cannot be deducted shall be calculated according to the following formula and deducted from the current input tax:

Non deductible input tax = deducted input tax multiplied by real estate net value rate

Real estate net value rate = (net value of real estate divided by original value of real estate) multiplied by


2. For the fixed assets, intangible assets and real estate that are not deductible and have no input tax deductible, if their use is changed, the deductible input tax can be calculated according to the following formula in the month following the change of use according to the legal and effective VAT deduction Voucher:

Deductible input tax = net value of fixed assets, intangible assets and real estate / (1 + applicable tax rate)×Applicable tax rate


3. In case of abnormal loss or change of use, which has been included in the input tax but cannot be deducted according to the current value-added tax system, the input tax shall be transferred out.


▌ policy basis:

Announcement of the State Administration of Taxation on matters related to deepening the value added tax reform (State Administration of Taxation Announcement No. 4, 2019)

Notice of the Ministry of Finance and the State Administration of Taxation on comprehensively promoting the pilot project of replacing business tax with value added tax (CS [2016] No. 36)


four

The amount of tax retained at the time of enterprise cancellation


1. If the general VAT taxpayer (the original taxpayer) transfers the assets, liabilities and labor force to other general VAT taxpayers (new taxpayers) and cancels the tax registration according to the procedures, the input tax not deducted before the cancellation registration can be carried forward to the new taxpayer for further deduction.


2. When a general taxpayer cancels or is disqualified as a general taxpayer during the guidance period and becomes a small-scale taxpayer, its inventory will not be transferred out of the input tax, and its retained tax will not be refunded.


▌ policy basis:

Notice of the Ministry of Finance and the State Administration of Taxation on some policies of value added tax (CS [2005] No. 165)

Announcement of the State Administration of Taxation on issues related to the treatment of VAT retained for taxpayers' asset restructuring (SAT Announcement No. 55, 2012)


five

Invoice not certified


1. Under any of the following circumstances, it shall not be used as the deduction voucher of VAT input tax. The tax authorities shall return the original and the buyer may require the seller to issue a new special invoice.


(1) Failure to authenticate means that the ciphertext or plaintext listed in the special invoice cannot be recognized, and the authentication result cannot be produced.


(2) If the taxpayer identification number certification is inconsistent, it means that the identification number of the buyer listed in the special invoice is wrong.


(3) If the code or number of a special invoice is not verified, it means that the ciphertext listed in the special invoice is not consistent with the code or number of the plaintext after being interpreted.


2. In case of any of the following circumstances, it shall not be used as the deduction voucher of VAT input tax for the time being, and the tax authorities shall detain the original copy, find out the reasons, and deal with the case by case.


(1) Re certification refers to the re certification of the same special invoice that has been certified and matched.


(2) Error in ciphertext means that the ciphertext listed in the special invoice cannot be interpreted.


(3) Certification discrepancy refers to that the taxpayer identification number is wrong, or the ciphertext listed in the special invoice is not consistent with the clear text after interpretation.


(4) The special invoice listed as out of control means that the special invoice at the time of certification has been registered as the special invoice out of control.


▌ policy basis:

Supplementary Notice of the State Administration of Taxation on Revising the provisions on the use of special VAT invoices (GSF [2007] No. 18)


six

Special invoice voucher of abnormal VAT


1. The special VAT invoice meeting one of the following conditions shall be included in the scope of abnormal Voucher:

(1) The VAT special invoice that has not been issued or uploaded has been issued in the tax control special equipment lost or stolen by the taxpayer.


(2) Special VAT invoice for non normal taxpayers who fail to declare to tax authorities or fail to pay taxes as required.


(3) The value-added tax invoice management system found that there were "inconsistent comparison", "missing copies", "invalid" VAT special invoices.


(4) Through the big data analysis of the State Administration of Taxation and the provincial taxation bureau, it is found that the VAT special invoices issued by taxpayers are suspected of falsely issuing and failing to pay consumption tax as required.


(5) It belongs to the situation specified in Item (1) of Article 2 of the announcement of the State Administration of Taxation on issues related to the recognition and handling of VAT special invoices issued by enterprises that run away from or lose their Union (announcement of the State Administration of Taxation, No. 76, 2016).


(6) If the general VAT taxpayers declare and deduct abnormal vouchers, the corresponding VAT special invoices issued shall be included in the scope of abnormal vouchers: the input tax of abnormal vouchers accounts for more than 70% (including) of the input tax of special VAT invoices in the same period;The accumulated input tax on abnormal vouchers exceeds 50000 yuan.


2. If the special VAT invoice is included in the scope of abnormal voucher, it shall be handled according to the following provisions:


(1) If the input tax of VAT has not been declared for deduction, deduction is not allowed for the time being.Unless otherwise specified, the input tax that has been declared for deduction shall be transferred out. 


(2) For those who have not applied for export tax refund or have declared but have not yet applied for export tax refund, they are not allowed to apply for export tax refund temporarily, unless otherwise stipulated.If the taxpayer applying the VAT exemption and refund method has already handled the export tax refund, the input tax shall be transferred out according to the value-added tax indicated on the special VAT invoice included in the scope of abnormal vouchers; if the taxpayer applying the VAT exemption and refund method has already handled the export tax refund,The tax authorities shall, in accordance with the current provisions, recover the tax refund corresponding to the VAT special invoice included in the scope of abnormal vouchers.


▌ policy basis:

Announcement of the State Administration of Taxation on the management of abnormal VAT tax deduction voucher and other related matters (Announcement No. 38 of the State Administration of Taxation in 2019)


Advantages of Huacai

Industry leader
The first financial and taxation service agency landing on the new third board and the first fiscal and taxation platform providing online services
Qualification certification
It has the agency license issued by the Finance Bureau, the national high-tech enterprises, and the 5A level certification of the accounting agency of the general association of China
23 years of industry experience
300 + professional service staff, 20000 + customer service experience
ISO certification information security
Through the international ISO27001 information security management system standard certification
ISO certification standard management
Through the international ISO9001 quality management system certification
Service capability
The scope of service covers hot cities and hot areas