The basic formula is: tax payable = output tax-input tax.

VAT calculation formula: sales excluding tax ×( 1+ tax rate) = sales including tax.

Sales excluding tax × tax rate = payable output tax.

Basic example:

In April, Company A paid the product A 1 10,000 yuan, and the VAT input tax10.7 million yuan to obtain the special VAT invoice. The sales of product A including tax is 23,400 yuan.

Input tax = 1700 yuan

Output tax = 23400/(1+17%) ×17% = 3400 yuan.

Taxable amount =3400- 1700= 1700

Correlation threshold

If the sales of taxable services provided by individuals do not reach the threshold of value-added tax, they shall be exempted from value-added tax; If the threshold is reached, the value-added tax will be paid in full. The value-added tax threshold does not apply to individual industrial and commercial households recognized as general taxpayers.

If the tax is paid on time, the monthly taxable sales amount is 5000 ~ 20000 yuan (inclusive).

If the tax is paid by time, the sales per day will be 300 ~ 500 yuan (inclusive).

On March 5th, 20021,Premier the State Council stated in the report on the work of the government of the State Council (20021) that the threshold of value-added tax for small-scale taxpayers would be raised from 6,543,800 yuan to 6,543,800 yuan. Small and micro enterprises and individual industrial and commercial households with annual taxable income less than 6,543,800 yuan will be subject to income tax at half on the basis of the current preferential policies.