1, deductible
If an enterprise uses outsourced materials for production, all input taxes can be used to offset the output tax.
For general taxpayer enterprises, when purchasing raw materials for production, the input VAT amount corresponding to these raw materials can be used for deduction. This is also a common way of dealing with enterprises.
For example, if an enterprise uses purchased raw materials to build a factory building, its input tax can be fully deducted.
2, can not be deducted
If the enterprise uses the purchased raw materials for non-taxable items, the input tax amount of this part of the purchased raw materials cannot be used to offset the output tax amount.
For example, enterprises use outsourced raw materials for the construction of staff quarters, and the corresponding input tax cannot be deducted.