Publicity of tax refund policy

Since 20 19, China has gradually established an incremental VAT refund system. This year, we will improve the system of value-added tax deduction and refund, optimize the collection and refund process, implement large-scale tax deduction and refund in advance the input tax that taxpayers can continue to deduct in the future.

Second, detailed analysis.

The so-called tax allowance can be simply understood as the tax allowance when the input tax amount is greater than the output tax amount. Input tax refers to the value-added tax paid by taxpayers when they buy goods, intangible assets or real estate. Output tax refers to the value-added tax collected at the time of sale.

Third, how is the tax rebate formed?

The tax refund is mainly caused by the inconsistency between the taxpayer's input tax and the output tax in time, such as the centralized purchase of raw materials and inventory has not been fully sold; No income during the investment period, etc. In addition, in the case of coexistence of multiple tax rates, the applicable tax rate of sales is lower than that of input, which will also form a tax credit. There are generally two ways to deal with it internationally: allowing taxpayers to carry it forward to the next period for further deduction or applying for tax refund in the current period. At the same time, countries or regions that allow tax refund will set stricter tax refund conditions accordingly, such as the tax exemption must reach a certain amount; You can only apply for a tax refund once a year or a period of time; Only certain industries are allowed to apply for tax refund.