According to the tax law, the input tax credit allowed from output tax is limited to the value-added tax stated on the following VAT deduction vouchers and the input tax calculated at the prescribed deduction rate:
Taxpayers purchasing goods or taxable labor services and obtaining the VAT stated on the VAT deduction coupon of the VAT invoice from the seller.
Taxpayers purchasing tax-exempted agricultural products pay agricultural producers or small-scale taxpayers, and obtaining the purchase vouchers approved by the tax authorities to use the price stated in the input tax credit at 10%.
The purchase of tax-exempted grain from China's grain purchasing and marketing enterprises can be offset by 10% of the input tax on the amount of the ordinary invoice obtained.
Taxpayers can deduct input tax at 7% of the amount of freight and fund listed in the freight bill (ordinary invoice) for freight paid for the purchase of goods and sale of goods (excluding other miscellaneous fees such as loading and unloading fees and insurance fees).
The general taxpayers of the production enterprises to purchase waste materials recycling business unit sales of tax-exempt waste materials, according to the waste materials recycling business unit issued by the tax authorities supervised by the amount of ordinary invoices, calculated at 10% of the input tax credit.
Enterprises purchasing special equipment for the VAT anti-counterfeit tax-control system and general-purpose equipments can deduct the VAT output from the VAT output with the tax amount stated in the special invoice obtained for the purchase.
Can input tax rate and output tax rate be different?
Yes, it can be deducted. As long as the input tax is used for daily business activities, it can be deducted.
Construction companies have 13%, 9%, 6% VAT rate, if the output tax rate is lower than the input tax rate, this is a normal situation, the financial staff do not have to worry about, there is no tax violation, there is no tax risk.
Construction companies provide construction services, VAT rate of 9%, the cost is mainly labor and construction materials. We all know that it is very difficult to obtain special invoices to offset VAT on labor costs, but the purchase of construction materials and other goods, from the upstream formal enterprises to buy, can obtain 13% input invoices, construction enterprises can offset VAT, recognized as a general taxpayer enterprises may be more cost-effective than small-scale, through the input tax credit, so that the VAT burden rate is much lower than the small-scale 3% tax rate.
Input tax credits at what rate? This question, in this article after sharing, you should have understood, enterprises can use VAT invoices to offset its input tax, but because of the special invoices obtained by the project is different, so in the offset tax rate is also different, I hope that you can master after learning. I'll see you soon.