What is VAT?
Value-added tax is a turnover tax based on the value-added amount of goods (including taxable services) generated in the circulation process. From the taxation principle, value-added tax is a turnover tax levied on the value-added or appreciation of commodities in many links such as commodity production, circulation and labor services. The extra-price tax is implemented, that is, it is borne by consumers. Only when there is value-added, tax is needed. Without VAT, there is no tax.
Tax scope of value-added tax
There are three kinds of tax scope of value-added tax, including general scope: the tax scope of value-added tax includes selling (including importing) goods and providing processing, repair and replacement services. Special projects: commodity futures (including commodity futures and precious metal futures); The business of selling gold and silver by banks; Pawnshops sell dead goods; Consignment business is the business of customers selling consignment goods; Other units and individuals outside the postal department produce, distribute and sell philatelic products. Special behavior: VAT is levied as sales.
Types of VAT
According to the different deduction methods of purchased fixed assets, value-added tax can be divided into:
Productive value-added tax means that when collecting value-added tax, only the tax of production materials belonging to non-fixed assets can be deducted, and the tax included in the value of fixed assets is not allowed to be deducted. Income-based value-added tax means that when collecting value-added tax, only the tax included in the depreciated part of fixed assets is allowed to be deducted, and the undepreciated part is not included in the deduction amount. The tax object of this kind of value-added tax is roughly equivalent to national income, so it is called income-based value-added tax. Consumption value-added tax, consumption value-added tax refers to the one-time deduction of all taxes included in the value of fixed assets when collecting value-added tax. In this way, as far as the whole society is concerned, the means of production are excluded from the scope of taxation. The tax object of this kind of value-added tax is only equivalent to the value of social consumption materials, so it is called consumption value-added tax.