How are the input and output of VAT invoices deducted?

General taxpayers ask for VAT invoices, and the input tax is used to offset the output tax.

Legal analysis

Invoice refers to the business vouchers issued and collected by all units and individuals in buying and selling goods, providing or receiving services and engaging in other business activities. It is the original basis of accounting, and it is also an important basis for law enforcement inspection by audit institutions and tax authorities. The contents of the invoice include the name, date, quantity and agreed price of the products or services provided to the buyer. Each invoice has a unique journal number to prevent duplicate or skip invoices. The authorities that have the right to collect taxes and fees are the competent departments of finance, national tax, local tax, customs and related industries, and the competent departments of finance and related industries all use special administrative receipts. National tax and local tax shall be uniformly managed by State Taxation Administration of The People's Republic of China, People's Republic of China (PRC), and the customs shall be vertically managed by the General Administration of Customs. National and local taxes are responsible for the collection of industrial and commercial taxes, which basically include all kinds of taxes levied on enterprises and individual residents engaged in industrial and commercial operations, and most of the taxes belong to industrial and commercial taxes. Customs is responsible for collecting tariffs, including import and export tariffs and ship tariffs. There are many kinds of invoices, which are mainly classified according to the characteristics of the industry and the taxpayer's production and operation projects, and each invoice has a specific scope of use. Ordinary invoices are mainly used by business tax taxpayers and small-scale VAT taxpayers, and ordinary VAT taxpayers can also use ordinary invoices when they cannot issue special invoices. Ordinary invoices consist of industry invoices and special invoices. The former is applicable to a certain industry and business, such as commercial retail unified invoice, commercial wholesale unified invoice, industrial enterprise product sales unified invoice, etc. The latter is only applicable to a certain business project, such as advertising fee settlement invoice, commercial housing sales invoice, etc. Special invoices for value-added tax are the product of the implementation of the new tax system, which are set by the tax authorities according to the needs of value-added tax collection and management, and are specially used for taxpayers to sell or provide value-added tax taxable items.

legal ground

Measures of People's Republic of China (PRC) Municipality on Invoice Management

Twenty-seventh units and individuals that issue invoices shall establish a registration system for the use of invoices, set up an invoice register, and regularly report the use of invoices to the competent tax authorities.

Twenty-eighth units and individuals that issue invoices shall, at the same time of changing or canceling the tax registration, go through the formalities of changing and canceling the invoices and invoice receiving and purchasing books.