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Problems Needing Attention In Deduction Of Input Tax

2010/11/19 14:33:00 95

Since January 1, 2009,

increment

The amount of input tax payable on fixed assets (including investment, the same below) or homemade (including the extension, installation and the same below) shall be deducted according to the relevant provisions of the Provisional Regulations of the People's Republic of China on value added tax (Decree No. 538th of the State Council, hereinafter referred to as the regulations) and the detailed rules for the implementation of the Provisional Regulations of People's Republic of China (Ministry of finance, State Administration of Taxation No. fiftieth, hereinafter referred to as the detailed rules), which shall be deducted from the amount of tax payable according to the special invoices of value-added tax, the special payment book for import value-added tax and the pport cost settlement documents (hereinafter referred to as value added tax withholding tax vouchers), and the input tax shall be recorded in the "payable tax - the value added tax (input tax)" subject. General taxpayers (hereinafter referred to as taxpayers) purchase (including donations, in kind).

There are several matters needing attention in this regulation:

1. The fixed assets mentioned above refer to machines, machinery, means of pport and other equipment, tools and appliances which are related to production and operation for a period of more than 12 months.

Cars, motorcycles and yachts purchased for the purpose of consumption tax shall not be deducted from input tax; real estate such as houses and buildings can not be included in the scope of VAT deduction.

Two. About the purchase tax for purchased materials for construction projects.

Turn out

Problem

(1) if purchased materials are used for installation of machinery and equipment, etc.

construction project

Cheng, whose input tax is allowed to deduct, does not need to make input tax.

Borrow: in construction

Loan: raw materials

(two) if the purchased materials are used for building projects such as buildings and buildings, the input tax is not allowed to be deducted.

Borrow: in construction

Loan: raw materials

Taxes payable - VAT payable (pferred tax)

Another thing to add is that if purchased goods, materials, supplies and so on, if used for normal production and business activities, the input tax is allowed to be deducted. For example, if the office supplies are purchased, if the VAT invoices are obtained, the input tax can be deducted.