If the enterprise obtains part of the value-added tax by refueling, it can be deducted from the input tax. However, China's VAT management is very strict, and enterprises must meet many conditions if they want to deduct it. If any of these conditions are not met, it will lead to the result that they cannot deduct. If deduction is not allowed, the enterprise will deduct it. When the tax bureau finds this situation, it will ask the enterprise to transfer the input tax and punish it. Therefore, Platinum Financial Training believes that enterprises must have an understanding of this issue. These conditions are:

Purchasing enterprises must belong to the general taxpayer of value-added tax;

Must obtain a legal tax deduction certificate;

Business must really happen;

Must be certified and declared within the specified time;

Deductions must be calculated correctly and reasonably according to law.

Some enterprises may find it difficult to understand that "calculating the deduction legally, correctly and reasonably". In my real life, some items are both deductible and non-deductible. What should I do? The following platinum financial training will explain this problem to everyone through a picture.

Difference of input deduction of different procurement projects

You can look at the difference between deduction and input of different procurement projects. Then, if the items purchased by the enterprise themselves are applicable to the normal taxable business of value-added tax, they can of course be deducted. If it is used exclusively for a non-deductible business, such as collective welfare, such as business tax, it is of course non-deductible.

So if this project

It is also used for value-added tax business and non-deductible business.

, then what should I do?

Then there are some special items at this time, and the national regulations are: directly enter the deduction in full, and then we will divide it. these

Special project

What is this? It is fixed assets, tangible movable property lease and intangible assets. In other words, if an enterprise purchases such items, it is used for both deductible items and non-deductible items, and it can be deducted directly and in full regardless of the proportion. For other projects, it needs to be divided according to some national formulas: some will be deducted, and some will not be deducted.

Here's an example: Company A is a financial consulting company, providing financial consulting services for domestic customers and overseas customers. Providing financial consulting services to domestic customers is of course a taxable item of value-added tax. Company A can apply for exemption from value-added tax by providing financial consulting services to overseas customers.

Platinum, which was briefly introduced before, is exempt from VAT? This is a non-deductible item. At this time, if Company A buys some computers for employees to use, then the computers themselves must be used for both domestic and overseas consulting projects. As the computers belong to the general items we just mentioned and are fixed assets, these computers will be deducted in full and do not need to be divided. Other items may need to be divided. For example, enterprises purchasing ballpoint pens need to distinguish which parts need to be deducted and which parts cannot be deducted.