Company invoice tax deduction refers to the deduction of operating income (or value-added) for expenditure items used for costs in production or operations.

Tax credit refers to the refundable input tax on raw materials, parts, fuel, power, etc. used by production enterprises to export self-produced goods, which can offset the tax payable on domestically sold goods. When a general VAT taxpayer obtains a special VAT invoice, the cost is the complete cost excluding tax (separation of price and tax). If a 13% VAT special invoice is not obtained, the cost will definitely be higher (input VAT cannot be deducted from output VAT). With the qualification of a general taxpayer, the input value-added tax invoices obtained can be deducted. The retained tax credit means that as a general taxpayer, if you purchase more goods in that month, the input tax will be more, and there will be more inventory goods. If the current input is greater than the output, there will be retained tax credit, and there will also be a corresponding amount of inventory. commodity.

Legal Basis

"Provisional Regulations of the People's Republic of China on Business Tax"

Article 5 The taxpayer's turnover provides taxable services to the taxpayer , all prices and extra-price fees collected for transferring intangible assets or selling real estate. However, the following circumstances are excepted:

(1) If a taxpayer assigns the contracted transportation business to other units or individuals, the total price and extra-price expenses obtained shall be deducted from the amount paid to other units or individuals. The balance after transportation expenses is the turnover;

(2) If a taxpayer is engaged in tourism business, the entire price and extra-price expenses obtained by the taxpayer shall be deducted from the accommodation fees and expenses paid to other units or individuals on behalf of tourists. The balance after meals, transportation expenses, tickets to tourist attractions and travel expenses paid to other group tour companies is the turnover;

(3) If the taxpayer subcontracts the construction project to other units, the balance shall be The balance of all the prices and extra-price fees obtained after deducting the subcontracting fees paid to other units is the turnover;

(4) The trading business of foreign exchange, securities, futures and other financial commodities shall be The balance after the selling price minus the buying price is the turnover;

(5) Other circumstances specified by the financial and taxation authorities of the State Council.