Input tax that ordinary taxpayers cannot deduct:

1. Purchase of fixed assets (except 6 provinces and 26 cities in Northeast and Central China);

2. Purchase of goods or taxable services for non-taxable items;

3. Goods purchased or taxable services for tax-free items;

4. Goods purchased or taxable services used for collective welfare or personal consumption;

5. Abnormal loss of purchased goods;

6. Goods purchased or taxable services consumed by products in process and finished products with abnormal losses.

Special input tax allowed to be deducted by general taxpayers:

1. VAT indicated on the special VAT invoice obtained from the seller;

2. Value-added tax indicated on the tax payment certificate obtained from the customs;

3. The deductible input tax for the purchase of duty-free agricultural products (ordinary invoices) shall be calculated according to the purchase price and the stipulated deduction rate (13%).

4. The freight paid by general taxpayers for outsourcing or selling goods (except fixed assets) shall be deducted at the deduction rate of 7% according to the freight amount listed in the settlement documents (ordinary invoices).

5. The general taxpayer of the production enterprise can deduct the input tax according to the amount 10% indicated on the ordinary invoice when purchasing the waste materials from the waste materials recycling business unit.

Scope of value-added tax collection

Value-added tax is a turnover tax based on the value-added of goods (including taxable services) in the circulation process. From the tax principle, VAT is a turnover tax levied on the added value of commodities in production and circulation, E68A4A2A64313336566265, or the added value of commodities. The extra-price tax shall be borne by consumers.

Collection range

General scope

The scope of VAT taxation includes the sale (including import) of goods and the provision of processing, repair and replacement services.

Special project

Commodity futures (including commodity futures and precious metal futures); -Commodity futures are subject to value-added tax, which is paid in the physical delivery;

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

Regarded as sales: The following eight acts are regarded as selling goods in the VAT Law, and all of them are subject to VAT.

Entrust the goods to others for sale.

Sell goods on behalf of others

Transferring goods from one place to another (except the same county and city)

Use self-produced or entrusted goods for non-taxable items.

Goods produced, commissioned or purchased are regarded as investments in other units.

Distributing goods produced, processed or purchased to shareholders or investors.

Use the self-produced entrusted goods for employee welfare or personal consumption.

Give the goods produced, processed or purchased to others free of charge.

What input taxes can trading companies deduct? Commercial enterprises can be general taxpayer enterprises or small-scale taxpayer enterprises. If a commercial enterprise belongs to a general taxpayer enterprise, the purchase tax deduction method shall be applied to calculate the value-added tax of the enterprise. The difference between the output tax and the input tax belongs to the enterprise's value-added tax, and the specific input invoice is a special VAT invoice. For more exciting content about finance and taxation, please continue to refer to the introduction on our website.