1. The Regulations and Rules stipulate that the VAT invoice obtained for the purchase of fixed assets can be used to offset the output tax, but the fixed assets purchased for non-taxable items, tax-exempted items, collective welfare or personal consumption (including the taxpayer's social and socializing consumption and self-use of motorcycles, cars, and yachts that are subject to consumption tax) and real estate belonging to business tax taxable items, as well as real estate construction (including new construction, alteration, expansion, and expansion), are not subject to the VAT. However, input tax deduction is not allowed for fixed assets (including mixed machinery and equipment) purchased for non-taxable projects, tax-exempt projects, collective welfare or personal consumption (including taxpayers' consumption for socializing and self-use of motorcycles, cars and yachts subject to consumption tax), as well as real estate belonging to the taxable items of business tax, and real estate construction in progress (including the raw material costs and repair costs of new construction, alteration, expansion, renovation and decoration of real estate). This is the key point of this VAT transformation reform.
2, "Ministry of Finance, State Administration of Taxation on the National Implementation of VAT Transformation Reform Circular on Several Issues" (Cai Shui [2008] No. 170) in accordance with the new "Regulations", "Rules" for the input tax credit policy for fixed assets of the relevant provisions of the supplement, that is: from January 1, 2009, the general taxpayers of the value-added tax to purchase (including the acceptance of donations, in-kind investment) or From January 1, 2009, general VAT payers who purchase (including accepting donation, in-kind investment) or self-made (including alteration, expansion and installation) fixed assets can offset the input tax incurred on fixed assets (referred to as input tax on fixed assets) from the output tax amount with the special VAT invoice, special payment certificate for VAT on customs imports, and the settlement bill of transportation cost (collectively referred to as VAT deduction vouchers).
However, the following points should be noted:
(1) The input tax on fixed assets allowed to be deducted refers to the amount of VAT actually incurred by the taxpayers after January 1, 2009 (including January 1), and the amount of VAT stated on the VAT deduction vouchers issued after January 1, 2009, or the amount of VAT calculated based on the VAT deduction vouchers. If the purchase of fixed assets occurred before 2008, even if the VAT invoice issued after January 1, 2009 and the tax deduction vouchers of the related business are not allowed to deduct.
(2) Since January 1, 2009, taxpayers selling their own used fixed assets (refers to the taxpayer has been depreciated according to the financial accounting system of fixed assets), to distinguish between different cases of value-added tax:
① sales of their own used fixed assets purchased or self-made after January 1, 2009, in accordance with the applicable tax rate of value-added tax.
② Taxpayers who were not included in the pilot project of expanding the scope of VAT deduction before December 31, 2008, selling their own used fixed assets purchased or self-made before December 31, 2008, the VAT is levied at a reduced rate by half at 4%;
③ Taxpayers who were included in the pilot project of expanding the scope of VAT deduction before December 31, 2008, selling (iii) Taxpayers who have been included in the pilot program for expanding the scope of VAT credit before December 31, 2008, and sell their own used fixed assets purchased or self-manufactured prior to the pilot program for expanding the scope of VAT credit in this region, shall levy VAT at 4% less than 50%; and the sale of their own used fixed assets purchased or self-manufactured after the pilot program for expanding the scope of VAT credit in this region shall levy VAT at the applicable tax rate.
(3) Taxpayers who have deducted input tax on fixed assets used for non-VAT taxable items, VAT-exempted items, collective welfare or personal consumption, as well as self-manufactured or purchased fixed assets incurring abnormal losses should calculate and transfer out the non-deductible input tax in the same month.
(4) The taxpayer has a deemed sale of fixed assets, the sales of used fixed assets can not be determined, the net value of fixed assets for sales.
(5) Since January 1, 2009, the VAT exemption policy on imported equipment and the VAT refund policy on the procurement of domestically produced equipment by foreign-invested enterprises have ceased to be implemented. The original "Ministry of Finance, State Administration of Taxation on the issuance of the "Northeast region to expand the scope of VAT deductions on a number of issues of the Notice" (Cai Shui [2004] No. 156) and other 15 to expand the scope of VAT deductions pilot policy documents from January 1, 2009 onwards to stop the implementation.
3. Since the input tax on the purchase of machinery and equipment can be offset against the output tax, the new Regulations have deleted the VAT exemption policy of "equipment imported for processing with supplied materials, assembling with supplied parts and compensatory trade" of the original Regulations.
(ii) clarified the input tax credit policy related to fixed assets input tax credit policy.
1, will not be allowed to deduct input tax on the transportation costs of goods and the sale of tax-exempt goods transportation costs of input tax included in the scope of the output tax is not deductible. That is: not allowed to deduct input tax items, which contains the input tax amount of transportation costs are also not deductible.
2, the purchase of goods in the event of abnormal losses (including theft, loss, mold and deterioration), and its purchase of labor related input tax is not deductible from the output tax, such as: transportation costs related to the purchase of goods, processing and repair costs.