For small-scale pilot enterprises with annual sales below 5 million, the VAT rate is 3%, and the input tax shall not be deducted.
Due to the imperfect accounting of small-scale taxpayers, special invoices for value-added tax cannot be issued, and only ordinary invoices can be issued. To deduct VAT, a special VAT invoice must be obtained and verified by the verification system of the tax authorities. VAT ordinary invoices are not deductible and cannot be used as input tax deduction.
If the taxpayer's information is incomplete, the input tax shall not be deducted from the output tax. A taxpayer who uses a general payment book to deduct the input tax shall have a written contract, a payment voucher and a statement or invoice from an overseas unit.
Where a taxpayer deducts the input tax with the General Payment Letter of People's Republic of China (PRC), it shall provide a written contract, payment voucher and a statement or invoice from an overseas unit for the reference of the competent tax authorities. If the information cannot be provided or the information is incomplete, the input tax shall not be deducted from the output tax.
Extended data
Some cases where input tax cannot be deducted
According to the Pilot Implementation Measures for Changing Business Tax to Value-added Tax in Transportation Industry and Some Modern Service Industries (Cai Shui [2011]11No.), general taxpayers providing taxable services may not deduct the input tax under the following circumstances.
1. Taxable items, non-VAT taxable items, VAT-exempt items, collective welfare or personal consumption used for purchasing goods, accepting processing, repair and replacement services or taxable services.
The leasing of fixed assets, patented technology, non-patented technology, goodwill, trademark, copyright and tangible movable property involved only refers to the leasing of fixed assets, patented technology, non-patented technology, goodwill, trademark, copyright and tangible movable property dedicated to the above projects, and the input tax shall not be deducted.
2, abnormal loss of purchased goods and related processing, repair and replacement services and transportation services, shall not be deducted from the input tax.
3. The purchased goods (excluding fixed assets), processing, repair and replacement services or transportation services consumed by products in process and finished products with abnormal losses shall not be deducted from the input tax.
4. The accepted passenger service shall not be deducted from the input tax.
5. Motorcycles, automobiles and yachts subject to consumption tax for their own use shall not be deducted from the input tax. Except for the subject matter of leasing service as a means of transportation and providing transportation services.
6. Taxable services provided by taxpayers in non-pilot areas cannot be deducted from the input tax. Taxpayers in non-pilot areas have not yet issued special tickets for taxable services, which are not within the scope of "camp reform" and do not use business tax tickets.
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