The tax calculation basis of water conservancy funds is tax-exclusive income, that is, the value-added tax sales volume is the basis for tax calculation. Water conservancy funds are a local policy, which are collected in some places and not collected in others. Regarding the tax rate for water conservancy construction funds, localities still have great autonomy, so there are also big differences.

What is the tax basis for water conservancy construction funds?

1. VAT sales are used as the basis for tax calculation.

Sales, as the name implies, is the company’s sales excluding tax.

(1) Sales calculation: sales = sales volume × average sales price.

(2) Sales volume excluding tax: sales volume excluding tax = sales volume including tax/(1+tax rate or levy rate).

(3) Value-added tax: tax payable = output tax – input tax.

VAT, as the name suggests, is a tax on the added value.