This is a beta course, so its structure, chapters, and examples may continue to change.
Value-Added Tax
The core of VAT: output tax - input tax = tax payable. Invoice compliance and managing the credit balance are the key points.
- Small-scale taxpayers: a prescribed levy rate (such as 3%), simple filing, and no deduction of input tax (except in some pilot schemes).
- General taxpayers: tax rates of 13%, 9%, 6%, and so on, with input tax deductible, which requires strict invoice and bookkeeping management.
- Output tax: the tax computed at the applicable rate on the sale of goods or services.
- Input tax: the deductible tax on purchases backed by compliant special invoices, customs payment certificates, and so on.
- Credit balance: the credit that arises when input tax exceeds output tax, which can be refunded or carried forward if the conditions are met.
- Sell under the correct item category and tax rate, and avoid wrongly applying 6%, 9%, or 13%.
- Obtain compliant input invoices: the title, tax number, amount, tax, and category must match the real transaction.
- Confirm and select the invoices on time so that they can be deducted.
- Surcharges and additional levies: urban construction and maintenance tax, education surcharges, and so on are calculated as a percentage of the VAT payable.
- Using the wrong category or tax rate, which leads to a top-up payment plus late fees.
- Input invoices that are non-compliant or confirmed after the deadline, which cannot be deducted.
- Incorrect invoicing information (tax number or title), which forces a red reversal and reissue.