Several points actually refer to the VAT rate. There are four points, that is, 4%, six points, that is, 6% and so on. If you are a small-scale taxpayer and the buyer is a general taxpayer, if the other party wants a VAT invoice, you need to go to the tax bureau and only issue a 4% or 6% VAT invoice.
On the other hand, the tax rate applicable to ordinary taxpayers of the other side is 17%, so that the other side can only deduct 4% or 6% of the input tax, while the output item is 17%, which virtually increases the cost of purchasing goods.
Small-scale taxpayers engaged in taxable sales shall adopt a simple method to calculate the tax payable according to the sales volume and the collection rate, and shall not deduct the input tax. Calculation formula of tax payable:
Taxable amount = sales × collection rate
The standards for small-scale taxpayers shall be stipulated by the competent departments of finance and taxation of the State Council.
Extended data:
Tax amount is allowed to be deducted from the output tax amount:
(1) VAT indicated on the special VAT invoice obtained from the seller.
(2) The value-added tax indicated in the special payment book for customs import value-added tax obtained from the customs.
(3) For purchasing agricultural products, except for obtaining special VAT invoices or customs import VAT payment letters, the input tax shall be calculated according to the purchase price of agricultural products and the deduction rate 1 1% indicated in the purchase invoices or sales invoices of agricultural products, unless otherwise stipulated by the State Council. Input tax calculation formula:
Input tax = purchase price × deduction rate
(4) Value-added tax indicated on the tax payment certificate for withholding and remitting taxes obtained from tax authorities or withholding agents when purchasing labor services, services, intangible assets or domestic real estate from overseas units or individuals.
The adjustment of deduction items and deduction rate shall be decided by the State Council.
Baidu Encyclopedia-People's Republic of China (PRC) Provisional Regulations on Value-added Tax