Value-added tax is a turnover tax based on the value-added amount of goods in circulation, which is collected by the State Taxation Bureau. 50% of tax revenue comes from the central government and 50% from local governments.
In practice, it is difficult to accurately calculate the added value or additional value of commodities in the process of production and circulation. Therefore, tax deduction is widely used in the world. That is, according to the sales of goods or services, the sales tax is calculated at the prescribed tax rate, and then the value-added tax paid when obtaining goods or services is deducted, that is, the input tax, and the difference is the taxable amount of the value-added part. This calculation method embodies the principle of taxation according to value-added factors.
The collection of value-added tax usually includes all links in the production, circulation or consumption process. It is a neutral tax based on value-added or price difference. Theoretically, it includes all agricultural industries (planting, forestry and animal husbandry), mining, manufacturing, construction, transportation and commercial services. Or all links of raw material procurement, manufacturing, wholesale, retail and consumption.
The scope of VAT collection is as follows:
1, the change from business tax to value-added tax mainly involves transportation and some modern service industries;
2. Transportation includes land transportation, water transportation, air transportation and pipeline transportation;
3. Modern service industry includes R&D and technical services, information technology services, cultural and creative services, logistics auxiliary services, tangible movable property leasing services and judicial expertise consulting services.
Productive value-added tax means that when collecting value-added tax, only the part of the means of production belonging to non-fixed assets can be deducted, and the tax included in the value of fixed assets is not allowed to be deducted. The tax object of this kind of value-added tax is roughly equivalent to GDP, so it is called production value-added tax.
Announcement on issues related to the collection and management of small-scale taxpayers' VAT exemption policy Article 3 Small-scale taxpayers who pay taxes regularly may choose 1 month or 1 quarter as the tax payment period, and once they choose, they may not change it within one fiscal year.