The differences among the three types of value-added tax:

1. Different deductible objects are allowed

When collecting value-added tax, production-oriented value-added tax refers to that part of the means of production that belongs to non-fixed assets.

Income-based value-added tax means that when collecting value-added tax, only the tax included in the depreciation part of fixed assets can be deducted.

consumption-oriented value-added tax means that when collecting value-added tax, all taxes included in the value of fixed assets are allowed to be deducted at one time.

2. The scope of deduction is different.

The production value-added tax is not allowed to deduct the tax included in the value of fixed assets.

the undepreciated part of income-based value-added tax shall not be included in the deduction amount.

the consumption-type means of production of value-added tax are excluded from the scope of taxation.

3. The tax object is different

The tax object of productive value-added tax is roughly equivalent to the gross domestic product.

the object of income-based value-added tax is roughly equivalent to national income.

the taxable object of consumption-oriented value-added tax is only equivalent to the value of social consumption materials.

Extended information

The tax base on which the three types of VAT are calculated can be expressed in a formula.

The value-added of production-oriented VAT = sales-purchased non-fixed assets goods-purchased services

The value-added of income-oriented VAT = sales-purchased non-fixed assets goods-purchased fixed assets depreciation

The value-added of consumption-oriented VAT = sales-purchased non-fixed assets goods.

consumption-oriented value-added tax allows taxpayers to deduct the full value of fixed assets and current assets used for production and operation from the income from commodity sales in this period. As far as the whole society is concerned, it is actually equivalent to taxing only the means of consumption and not the means of production, so it is called consumption-oriented value-added tax.

II. Income-based value-added tax

Income-based value-added tax allows taxpayers to deduct the value of current assets used for production and operation and the current depreciation value of fixed assets from the income from selling goods in the current period. As far as the whole society is concerned, its value-added part is actually equivalent to national income, so it is called income-based value-added tax. ?

third, production value-added tax?

production-oriented value-added tax allows taxpayers to deduct the value of current assets used for production and operation from the income from commodity sales in the current period, but not the value of fixed assets. The scope of allowable deduction of value-added tax is limited to the value of raw materials, fuels and other labor objects. As far as the whole society is concerned, its value-added part is actually equivalent to the gross national product, so it is called productive value-added tax.

Resources Baidu Encyclopedia-VAT