Differences between VAT invoices and common invoices

Value-added tax is a type of conversion tax that collects taxes based on the value-added amount produced by the production and circulation of commodities and the provision of labor services. The so-called "value-added" refers to the difference between the income of a taxpayer from selling products or providing services within a certain period of time and the amount paid when purchasing goods and obtaining services, it is the new value created by taxpayers in their production and operation activities, which is equivalent to the value created by living labor. From the perspective of final product consumption, the sum of the added value of each link in the product from production to circulation is the value of the final product. Because the value-added amount is difficult to calculate in the specific economic operation, indirect calculation is adopted in the actual operation of the value-added amount calculation, that is, the basis for tax calculation is the commodity sales, at the same time, the tax amount that has been paid can be deducted from the tax amount to realize the principle of tax increase based on value-added factors. Depending on the deduction range, the value-added tax can be divided into two types: "income-type" and "production-type" value-added tax. The tax amount deducted from the depreciation part of the purchased fixed assets is referred to as the "income-type" value-added tax; the value-added tax is not allowed to be deducted as the "production" value-added tax.
Advantages of VAT:
1. It is conducive to implementing the principles of fair tax burden;
2. It is conducive to the rationalization of the production and operation structure;
Third, it is conducive to expanding international trade exchanges;
Fourth, it is conducive to the country's universal, timely and stable fiscal revenue.
1. Taxpayers who sell goods within the territory of the People's Republic of China or who provide processing, repair, and repair services as well as imported goods are the taxpayers of value-added tax.
II. Scope of Value-added Tax: 1. Goods; 2. taxable labor; 3. imported goods.
3. the value-added tax rate is divided into three levels: basic tax rate 17%, low tax rate 13%, and zero tax rate.
4. The tax calculation of value-added tax is based on the taxable basis of the taxpayer's sales of goods or the provision of taxable services, and the tax calculation basis of imported goods is the prescribed composition of the tax calculation price.
V. Calculation of tax payable for value-added tax
1. the taxable amount of the general taxpayer = the current output tax amount-the current input tax amount.
2. Tax payable of small-scale taxpayers = gross sales (1 + collection rate) x collection rate
3. taxable amount of imported goods = (tariff-based duty-paid price + tariff-10 Consumption Tax) X Tax Rate

VAT invoices are generally called "special VAT invoices". Why are they "special "? Because not every enterprise is eligible to use such invoices, only ordinary taxpayers are eligible, and generally taxpayers are not able to use the invoices on any occasions, for example, a product that is directly sold to a common consumer cannot be issued. In China, the units that sell goods or provide processing and repair services, as well as the individuals who import goods, calculate the tax price for the sales of goods or taxable services they have obtained and the amount of imported goods, tax deduction is implemented to produce a kind of turnover tax

Special VAT invoices are new types of invoices used to implement the new VAT system in China. Compared with ordinary invoices used in daily operation, they have the following features:

(1) The subjects used for invoices are different: special VAT invoices can only be purchased and used by general VAT taxpayers. If small-scale taxpayers need to use them, they can only be issued by the local tax authorities after approval by the tax authorities: ordinary invoices can be obtained and used by various taxpayers engaged in business activities and who have completed tax registration. Taxpayers who have not completed tax registration can also apply to the tax authority for purchase and use of ordinary invoices.

(2) The invoice content is different: special VAT invoices include purchase units, sales units, names of goods or services, quantity of goods or services, units of measurement, unit price and price, invoicing units, payers, and invoicing dates. in addition to the content, it also includes the taxpayer's tax registration number, excluding the value-added tax amount, applicable tax rate, and the amount of value-added tax payable. General invoices do not have content on the value-added tax.

(3) differences in the number of invoices: "There are four basic links for special VAT invoices. The first line is the inventory Link (used for record-filing) and the second line is the invoice Link (used for buyer accounting ), the third link is the deduction Link (used as the buyer's tax deduction credential), the fourth link is the accounting link (used for the seller's accounting), the general invoice is only three links, the first link is the root link, and the second link is the invoice link, the third link is the accounting link.

(4) different functions of invoices: special invoices for value-added tax are not only creden。 for the buyer and seller to receive and pay, but can also be used as creden。 for the buyer to deduct the value-added tax.

 

 

What is the value-added tax?Algorithm

In terms of tax calculation principle, value-added tax is a type of flow-to-tax that is levied on the newly added value or added value of goods in multiple links of commodity production, circulation and labor services.

According to China's current value-added tax law, the value-added tax can be summarized as: the value-added tax is for the units and individuals who sell goods, import goods and provide processing, repair and repair services in China, this is a type of conversion tax that calculates the tax on the sales of goods, the amount of imported goods, and the sales of taxable services, and implements the tax deduction.

The value-added tax is charged by the consumers. Only when there is value-added tax can there be no value-added tax, but in reality, it is difficult to accurately calculate the new value or value of a commodity in the process of production and circulation. Therefore, our country also adopted the internationally adopted tax deduction method, that is, based on the sales of goods or services sold, the export tax amount is calculated according to the prescribed tax rate, then deduct the value-added tax paid when the product or service is obtained, that is, the input tax amount. The difference is the value-added tax amount, this calculation method reflects the original tax calculation based on value-added factors.

Formula: value-added tax payable = output tax amount-input tax amount

The above text is very abstract and hard to understand. Below I will answer your question in a popular language, which may be easy to understand.

The value-added tax is the "Price Tax". What is the price Tax? That is, extra-Price Tax is borne by consumers. For example:

Your company purchases 100 pieces of goods from Company A, and the amount is 1000 yuan, but your company actually has to pay the other party not 1000 yuan, but 10000 + 10000 * 17% (assuming the VAT rate is 17%) = 11700 yuan.
Why should I pay 10000 yuan for the purchased goods? At this time, your company as a consumer will have to pay another 1700 yuan value-added tax, which is the value-added tax price. This 1700 yuan value-added tax is an "input tax" for your company ". Company A has received more than 1700 yuan of value-added tax and is not owned by Company A. Company A wants to pay 1700 yuan of value-added tax to the country. Therefore, Company A only collects and pays on behalf of the company and does not pay the taxes.

For example:
Your company processes 100 pieces of purchased goods into 80 pieces of product A and sells them to company B0, with a sales volume of 15000 yuan, the amount of money your company needs to pay for a product from Company B is not only 15000 yuan, but 15000 + 15000 * 17% = 17550 yuan, as a consumer, Company B should also pay another 2550 yuan value-added tax to your company. This is your company's "sales tax ". Your company has not owned the value-added tax of 2550 yuan, and your company has to pay it to the country. Therefore, the value-added tax of 2550 yuan is not borne by your company, your company only collects and pays for behalf of you.

If your company is a general taxpayer, the input tax can be deducted from the export tax.

The value-added tax for the purchase of goods by your company is 1700 yuan, and the value-added tax for the sales of product A is 2550 yuan. Because your company is a general taxpayer and the value-added tax of the input item can be deducted from the value-added tax of the sales item, the value-added tax paid by your company to the state is not 2550 yuan charged to Company B,: 2550-1700 = 850 yuan, so this 850 yuan is also paid by Company B to your company when purchasing a product from your company, and handed over to the country through your company. Company B buys a product from your company and then sells it to Company C. Company C then sells it to Company D ......, all these processes require a value-added tax. After being sold to the final consumption, the value-added tax will be transferred to the final consumer. Therefore, the value-added tax is also a flow-to-tax.

If you are an accountant, you can see from the accounting entries:

When your company purchases 100 pieces of goods from Company A, the entry:
Borrow: raw material 10000
Tax payable-VAT payable (input tax amount) 1700
Loan: Accounts payable-Company A 11700
The 1700 yuan collected in the entry is not used as the company's fee, but as the "payable tax". Because your company is a general taxpayer, the input tax can be deducted.

When your company sells 80 pieces of a products to Company B, the entries are as follows:
Borrow: Accounts Receivable -- Company B 17550
Loan: The main business revenue is 17000
Loan: tax payable-VAT payable (Sales Tax Amount) 2550
The entry does not regard the 2550 yuan value-added tax charged to Company B as the company's business income, but rather the "Tax payable" because it is not owned by your company, it is the tax that should be handed over to the country.

Export Tax Amount-input tax amount = 2550-1700 = 850 yuan is the tax to be handed over to the country.

The above example can give you a more intuitive understanding of the meaning of "Price Tax". Another example below will allow you to "value-added" of the value-added tax ", that is, "value-added amount" also has a more intuitive understanding.

Example:
Sales of 100 items A, excluding the Value-added Tax Unit Price 80 yuan, excluding the value-added tax sales is 100*80 = 8000 yuan
If the value-added tax is set to 17%, the output tax of a commodity is: 8000 * 17% = 1360 yuan.
When purchasing a product, 60 yuan (tax-included) is paid for each item. The total amount is 100*60 = 6000 yuan (tax-included). The total value should be 6000/(1 + 17%) = 5128.21 yuan, Tax Amount: 5128.21 * 17% = 871.79 yuan.
The new value of the above 100 items A is 8000-5128.21 (cannot be reduced by 6000, because 6000 is tax-included, to be converted into tax-included) = 2871.79 Yuan, the tax rate is 17%, so the value-added tax is: 2871.79 * 17% = 488.20 RMB. however, this algorithm is not used in the Tax Law. It is used here to give you a more intuitive understanding of the value-added part. The correct tax law algorithm is as follows:

VAT tax payable = Sales Tax Amount-input tax amount
= 1360-871.79
= 488.21 yuan

Note: The difference between the two methods is 0.01 RMB (488.21-488.20). The difference is that the 6000 RMB during purchase is the difference between the tax-included amount and the non-tax-included amount, which is normal, in practice, we can calculate the tax amount on the anti-counterfeit tax ticket)

Calculation formula:

Export Tax Amount = non-tax sales * Tax rate
Input tax amount = purchased goods excluding tax * Tax rate

Calculation Formula for conversion of Tax-included sales to non-tax sales:

Tax-free sales = Tax-included sales/(1 + 17%)

Issuing a VAT invoice (at the time of purchase) can offset the tax at the time of sales,
Increase the company's credit (not obvious ).
This is why everyone is willing to trade with the company that issues the VAT invoice as long as it is a tax invoice.

 

What is VAT? Why does the country accept the value-added tax?

1. Theoretically, the value-added value refers to the value newly created by an enterprise in the production process. Because the value-added tax only applies to the value-added tax, it is called "value-added" tax. For example, the production cost of a product is 80 RMB, and the price after the manufacturer produces and processes the product is 100 RMB, increasing the value by 20 RMB. In fact, the value-added tax is only 20 yuan (the purchased 80 yuan can be deducted from the input tax), the value-added tax to be paid by the manufacturer is 100 * 17% (sales said gold) -80 * 17% (input tax amount) = 3.4 RMB (tax payable ). Similarly, assuming that the product is sold to sellers at a price of 100, the seller's price is 150 yuan, and the value added to this link is 50 yuan, then the seller's tax payable is equal to 150 * 17% (sales tax) -100 * 17% (input tax amount) = 8.5 RMB. I don't know if I can understand the value-added tax.

2. If the value-added tax is not an income tax, it is only a part of the profit. The preceding example shows that the value-added tax is calculated by multiplying all the income by the corresponding tax rate, however, it can offset the value-added tax on your purchase.

3. Value-added tax is a type of tax levied on the sales of goods, the provision of processing, the repair of Configuration Services, and the value-added amount of imported goods. As long as the value-added tax is applied to the sales of goods, it is necessary to pay a value-added tax, whether it is a value-added ticket or ordinary ticket, even if it is not invoicing, it also has to pay taxes.

4. If a computer-selling company is a small-scale taxpayer (an enterprise with an annual income of less than 1.8 million RMB), the tax rate is 4%. For average Taxpayers (enterprises with an annual income of more than 1.8 million yuan), the tax rate is 17% (but the import tax on computers can be deducted ).

5. If you add money only for invoicing, it is not legal. Because the price of Chinese goods is not in the United States and other countries, it indicates the price and the tax amount. It is tax-sensitive. For example, a computer with a price of 4000 yuan has a tax of 153.85 (assuming that the company selling computers is a small-scale taxpayer), 4000 yuan should have a tax-free price of 3846.15 yuan and 153.85 yuan. At the same time, the seller should also issue an invoice of 4000 yuan. If you add money to invoice without invoicing, then the merchant will inevitably be tax evasion.

 

What is a VAT invoice?

An invoice is a receipt and payment credential issued and collected during the purchase or sale of goods, the provision or acceptance of services, and other business activities. There are two types of tax invoices: ordinary invoices and special VAT invoices.
Ordinary invoices refer to other invoices used by taxpayers other than special VAT invoices.
Special VAT invoices are used only when the general VAT payer and the Tax Authority issue small-scale VAT invoices. Taxpayers must engage in normal production and business activities. On the one hand, they must request an invoice from the payee and issue an invoice to the payer. In particular, the VAT system implements the tax deduction system by ticket. The invoice is not only a commercial certificate, but also a credential for tax payment and deduction.

The value-added tax invoice is also a kind of invoice. Enterprises with the general VAT Taxpayer qualification can apply to the competent national tax department to purchase the value-added tax invoice and issue it through the anti-counterfeiting tax control system. enterprises with the general VAT Taxpayer qualification can deduct the value-added tax with the value-added tax invoice.

-- Special VAT invoices are new types of invoices used to implement the new VAT system in China. They are different from ordinary invoices used in daily operation:

1. different requirements for invoice printing: According to article 22nd of the new Tax Collection and Administration Law, "special VAT invoices are printed by enterprises designated by the competent tax authority of the State Council. Other invoices are subject to the regulations of the competent authority of the State Council, printed by designated enterprises of provinces, autonomous regions, municipalities directly under the Central Government, and local tax bureaus. No invoice shall be printed without the designated by the tax authority as stipulated in the preceding paragraph.

2. different subjects are used for invoices: special VAT invoices can only be obtained and used by general VAT taxpayers. Small-scale taxpayers who need to use the invoices can only be issued by the local tax authorities after being approved by the tax authorities; ordinary invoices can be obtained and used by various taxpayers engaged in business activities and who have completed tax registration. Taxpayers who have not completed tax registration can also apply to the tax authority for purchase and use of ordinary invoices.

3. the invoice content is different: special VAT invoices include purchase units, sales units, names of goods or services, quantity of goods or services, units of measurement, unit price and price, invoicing units, payers, and invoicing dates. in addition to the content, it also includes the taxpayer's tax registration number, excluding the value-added tax amount, applicable tax rate, and the amount of value-added tax payable.

4. the invoice combination is different: "There are four special VAT invoices and seven joint, the first is the inventory Association (used for retention for future reference), and the second is the invoice Association (used for buyer accounting ), the third link is the deduction Link (used as the buyer's tax deduction credential), the fourth link is the accounting link (used for the seller's accounting), and the other links of the seventh link are the backup links, which are used as the enterprise's exit permit, inspection and warehouse retention; for general invoices, there are only three links. The first line is the root link, the second line is the invoice link, and the third line is the accounting link.

5. different functions of invoices: special invoices for value-added tax are not only the creden; for payment received by both buyers and sellers, but also can be used as the creden; for the buyer to deduct the value-added tax; except for freight, purchase of agricultural and sideline products, and waste materials, general invoices shall not be deducted at the statutory tax rate.