What is VAT? What's the difference between it and personal income tax?

Value-added tax is a tax levied on the value-added of units and individuals who sell goods or provide processing, repair and replacement services and import goods. Value-added tax has become one of the most important taxes in China, accounting for more than 60% of all taxes in China, and it is the largest tax.

The difference between value-added tax and personal income tax;

1, including different ranges.

Value-added tax includes 20 items, namely, electric power construction fund, Three Gorges Project construction fund, road maintenance fee, vehicle purchase surcharge, railway construction fund, highway construction fund, civil aviation infrastructure construction fund, post and telecommunications surcharge fund, port construction fee,

Local telephone installation fee income, civil aviation airport management and construction fee income, decentralized port maintenance fee income, tobacco commercial franchise profit income, iodized salt fund income, bulk cement special fund income, post subsidy special fund income, wall material special fund income, railway construction surcharge income, airworthiness fund income.

Personal income tax includes value-added tax, consumption tax, enterprise income tax, resource tax, land value-added tax, urban maintenance and construction tax, property tax, land use tax, travel tax, education surcharge and other taxes and fees paid by enterprises according to law.

Mineral resources compensation fees, stamp duty, farmland occupation tax and other taxes, as well as personal income tax collected and remitted by enterprises before being turned over to the state.

2, the calculation method is different

The calculation formula of VAT is:

Net operating income = operating income-operating expenses-depreciation of productive fixed assets-product tax+

Net rental income, net rental income of other assets and net rental income of converted self-owned housing, etc. The net income of property does not include the premium income from the transfer of ownership of assets.

The calculation formula of transfer net income is: transfer net income = transfer income-transfer expenditure.

The calculation formula of personal income tax is: the actual growth rate of per capita disposable income = (per capita disposable income in the reporting period/per capita disposable income in the base period)/consumer price index-100%.

3. Does it involve the Central Committee?

Value-added tax refers to the local retained part after the central and provincial fiscal revenue distribution, which mainly reflects the tax sharing of the local three-level fiscal tax sharing system.

Personal income tax reflects the fiscal revenue of the local retained part, and does not involve the income of the central and provincial governments.

Baidu Encyclopedia-VAT

Baidu encyclopedia-personal income tax