Value-added tax is a turnover tax based on the value-added amount of goods (including taxable services) generated in the circulation process.
From the tax principle, value-added tax is a turnover tax levied on the added value of many links such as commodity production, circulation and labor services or the added value of commodities. Extra-price tax is implemented, that is, it is borne by consumers, and tax is levied only if there is value added, and tax is not levied if there is no value added.
Extended data:
According to the different deduction methods of purchased fixed assets, value-added tax can be divided into:
1, production vat
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.
2. Income-based VAT
Income-based value-added tax means that when collecting value-added tax, only the tax included in the depreciation part of fixed assets is allowed to be deducted, and the depreciation part is not included in the deduction. The tax object of this kind of value-added tax is roughly equivalent to national income, so it is called income-based value-added tax.
3. Consumption VAT
Consumer value-added tax means that when collecting value-added tax, all taxes included in the value of fixed assets are allowed to be deducted at one time. In this way, as far as the whole society is concerned, the means of production are excluded from the scope of taxation. The tax object of this kind of value-added tax is only equivalent to the value of social consumption materials, so it is called consumption value-added tax. From June 5438+1 October1in 2009, China has implemented consumption-oriented value-added tax in various regions of the country.
References:
Baidu Encyclopedia-VAT