Significance of VAT refund policy

Significance of VAT deduction and tax refund policy;

VAT refund is an important measure to implement large-scale tax reduction and fee reduction policy. The implementation of the tax rebate policy is conducive to alleviating the financial pressure of enterprises, supporting enterprises to expand investment, promoting the upgrading of technology and equipment, effectively stimulating market vitality and promoting high-quality economic development.

Second, analysis

The so-called tax allowance can be simply understood as the tax allowance when the input tax is greater than the output tax. 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 charged at the time of sales. Generally speaking, there are many reasons for the formation of tax exemption, such as concentrated investment and long commodity production cycle.

3. How to deal with the VAT refund account?

In order to reflect the economic business financially, from the calculation and declaration to the actual receipt of the tax refund, the subject of tax receivable credit and tax refund can be added. When calculating the tax allowance, debit: tax payable, credit: tax payable, value-added tax payable and tax payable.