The value-added income obtained by enterprises or individuals in business activities is subject to VAT in accordance with the law.
The work of most financial and accounting practitioners will involve the responsibility of undertaking the tax payment of enterprises in accordance with the law.
To this end, Zhizhijun has sorted out the new version of the VAT rate table for 24 years to help you master the relevant policies and calculation methods of VAT:
The new VAT rate table for 2024
01. VAT rate
The VAT rate refers to the ratio between the amount of VAT payable by taxpayers and the amount of sales, and it is a tax policy formulated by the state in order to regulate the economy.
Moreover, the VAT rate will vary depending on the type and nature of the goods.
The VAT rates for general taxpayers are: 13%, 9%, 6%, 0%, so what items are these applicable to?
Let's take a closer look
02. Deduction rate
The deduction rate refers to the ratio between the amount of statutory deductions in VAT calculation and the amount of product tax.
General taxpayers deduct input tax with tickets, but for the purchase of agricultural products, the deduction rate is 9% and 10%, as follows
1️⃣ If a small-scale taxpayer who calculates and pays VAT according to the simple tax calculation method and pays VAT at the rate of 3% obtains a special VAT invoice, the input VAT shall be calculated based on the amount indicated on the special VAT invoice and the deduction rate of 9%.
2️⃣ If the sales invoice or purchase invoice of agricultural products is obtained (issued), the input tax shall be calculated based on the purchase price of agricultural products indicated on the sales invoice or purchase invoice of agricultural products and the deduction rate of 9%.
3️⃣ Taxpayers who purchase agricultural products for the production and sale or entrusted processing of goods subject to the 13% tax rate shall calculate the input tax rate according to the deduction rate of 10%.
4️⃣ If a taxpayer purchases agricultural products for the production and sale of goods subject to a tax rate of 13% or for the production and sale of other goods and services, the input VAT on agricultural products used for the production and sale of goods subject to a tax rate of 13% and other goods and services shall be calculated separately.
If it is not separately calculated, the input VAT amount indicated on the special VAT invoice or the special payment certificate for import VAT of the customs shall be the input tax, or the purchase price of agricultural products indicated on the purchase invoice or sales invoice of agricultural products and the deduction rate of 9% shall be used to calculate the input tax.
5️⃣ When deducting agricultural products:
(1) For goods produced from agricultural products, the deduction rate is the applicable tax rate for goods sold.
(2) The purchase of agricultural products for production and operation and does not constitute the entity of goods (packaging, auxiliary materials, fuel, low-value consumables):
The final excise tax rate is 9%, and the final excise tax rate is 13% and the deduction rate is 10%.
(3) In the case of direct sales of purchased agricultural products, the deduction rate is 9%.
03. Levy rate
Small-scale VAT taxpayers and general taxpayers who adopt simplified tax calculation use the levy rate when calculating their taxes.
At present, there are four levels of VAT collection rates - 0.5%, 1%, 3% and 5%, unless otherwise stipulated by the Ministry of Finance and the State Administration of Taxation, it is generally 3%.
Considerations for VAT input credits
01. Determine whether it is a general taxpayer
Taxpayers are divided into general taxpayers and small-scale taxpayers in value-added tax.
Only general taxpayers will be involved in the deduction of input tax, because general taxpayers calculate VAT based on the difference between output tax and input tax.
Small-scale taxpayers calculate VAT based on the product of sales and levy rate, which does not involve input tax.
02. Judge whether the tax deduction certificate is legal and compliant
1️⃣ The type of deduction voucher should be legal and compliant
When a VAT transaction occurs, it is common to receive different types of vouchers, but only some of them are legally compliant vouchers.
In addition to the common VAT invoices, the government has also issued a series of policies, stipulating that domestic passenger transport services, tolls and other legal and compliant vouchers can also be deducted from input tax, and the specific invoice types include the following:
2️⃣ The issuance of deduction vouchers should be standardized
Whether the issuance of deduction vouchers is standardized, the following four points are mainly checked:
(1) Whether it is consistent with the real transaction and does not involve false invoicing.
(2) The handwriting is clear, and the line is not pressed or wronged.
(3) The invoice seal is complete (at present, the invoice issued through the VAT electronic invoice public service platform adopts electronic signature instead of the invoice seal).
(4) The remarks column is complete.
03. It is judged to be an item that can be deducted for input tax
After receiving the invoice, the accountant should be clear about what it is used for.
Because the tax law clearly stipulates several situations in which input tax deduction is not allowed, only those items that do not belong to these items can be deducted from input tax.
Reminder: Taxpayers should select "tax exemption" instead of "0%" when the tax rate is issued.
Attention accountants
In addition to learning the above policies and regulations, there are also many detailed points of VAT deduction that need to be accumulated and learned through practical operation.
For example, after the sales of a motor vehicle is issued with a blue invoice, the electronic information of the vehicle will automatically flow and belong to the recipient, so the seller cannot issue multiple blue invoices for the same vehicle at the same time.
Therefore, when it comes to the "tax" related parts, you must not try to save trouble, don't think that it is enough to look at the tax rate table or memorize the normative requirements.