The calculation of value-added tax on taxable services for Shanghai pilot taxpayers includes general tax calculation methods and simplified tax calculation methods. Value-added tax calculation for general taxpayers (1) General tax calculation methods for general taxpayers in Shanghai pilot program 1. Calculation of tax payable General VAT taxpayers among the pilot taxpayers usually apply the general tax calculation method and calculate the output tax according to the three tax rates of 17%, 11% and 6% respectively. Calculation formula for tax payable: Tax payable = Current output tax - Current input tax When a general taxpayer pays taxes according to the prescribed tax period, the accounting entries are: Debit: Tax payable - - Value-added tax payable ( Taxes paid) (output tax for the current period - input tax for the current period) Credit: When the overpaid VAT is returned to the bank deposit, the opposite accounting entry will be made. It is important to note that, unlike business tax, the tax calculation basis for VAT taxable services is the sales volume, excluding the VAT amount charged to the purchaser, that is, the tax-exclusive price is used as the tax calculation basis. This is the same VAT calculation involved in sales of goods carried out nationally. The accounting entries are: Debit: bank deposits (accounts receivable, notes receivable), etc. (excluding tax price + excluding tax price × VAT rate) Credit: main business income (other business income), etc. (excluding Tax price) Taxes payable - Value-added tax payable (output tax) (excluding tax price × VAT rate) Important reminder: In principle, general tax calculation methods are applicable to general taxpayers providing taxable services. However, the simplified tax calculation method can be chosen in special circumstances. That is, general taxpayers who provide specific taxable services specified by the Ministry of Finance and the State Administration of Taxation can choose to apply the simplified tax calculation method to calculate taxes, but once chosen, it cannot be changed within 36 months. 2． Provisions on special circumstances (1) For taxable services provided by Shanghai pilot taxpayers that are subject to general tax calculation methods, the value-added tax refunded to the purchaser due to service suspension or discount shall be deducted from the current output tax reduce. (2) The value-added tax recovered due to service suspension, withdrawal of purchased goods, or discounts shall be deducted from the current input tax. (3) If a pilot taxpayer provides taxable services and indicates the price and discount amount separately on the same invoice, the discounted price shall be regarded as the sales amount; if the price is not indicated separately on the same invoice, the sales amount shall be regarded as the price. amount, no discount shall be deducted. Key reminder: In the guidelines, it is stipulated that cash discounts should be based on total amount → sales amount, total amount × VAT rate → VAT; commercial discounts should be based on net amount → sales amount, net amount Whether you are selling goods or providing taxable services, you must look at the invoice. 3. VAT withholding for overseas entities or individuals providing taxable services within the territory of the country. If an overseas entity or individual provides taxable services within the territory of the country and does not have an operating institution within the territory of the country, the withholding agent shall calculate the amount of tax to be withheld according to the following formula: Amount of tax paid = Account paid by the recipient/(1+tax rate)×tax rate Important reminder: The price paid by the recipient is regarded as the tax-included price and needs to be converted. (2) Shanghai’s pilot VAT general taxpayers shall implement simplified tax calculation. Public *** general VAT taxpayers for transportation services shall adopt simplified tax calculation. During the Shanghai pilot period for replacing business tax with VAT, general VAT taxpayers who provide ferry services, bus passenger transport, rail transit, taxis and other public transportation services can choose the simplified tax calculation method to calculate tax. : Tax payable = sales volume The accounting entries are: Debit: bank deposits (accounts receivable, notes receivable), etc. (excluding tax price + excluding tax price × collection rate 3%) Credit: main business income (other business income), etc. (not included) Tax price included) Taxes payable - Value-added tax payable (output tax) (tax price excluded tax. Value-added tax calculation for small-scale taxpayers Small-scale taxpayers who provide taxable services are subject to the simplified tax calculation method. Calculation formula: tax payable = sales volume Credit: Taxes payable on main business income (other business income), etc. (excluding tax price) - the sales return of the value-added tax payable (excluding tax price × levy rate of 3%) shall be accounted for inversely entries.

It is important to remind small-scale taxpayers who use the simplified tax calculation method to pay VAT. There is no input tax, so there is no difference between input tax and output tax. They only need to be treated as "tax payable - VAT payable". Can. When a small-scale taxpayer pays taxes within the prescribed tax period, the accounting entries are: Debit: Taxes payable - Value-added tax payable (excluding tax price × collection rate 3%) Credit: Bank deposit