Is there a need for input tax on material scrapping?

Distinguish whether it is a normal loss or an abnormal loss, and if the abnormal loss is abnormal, the input tax needs to be transferred out.

Abnormal losses refer to losses other than normal losses in the process of production and operation, including:

1) Losses from natural disasters;

2) Losses such as theft of goods, mildew and deterioration caused by poor management;

3) Other abnormal losses.

For scrapping, you need to go to the tax bureau for the record, and you don't need to approve it, and the input tax needs to be transferred out.

It is not normal wear and tear and needs to be transferred out.

According to Article 10 of the Provisional Regulations on Value-Added Tax, the input tax on the purchase of goods and related taxable services with abnormal losses, and the purchase of goods or taxable services consumed by the products and finished products with abnormal losses shall not be deducted from the output tax.

Article 21 of the original Detailed Rules for the Implementation of the Provisional Regulations on Value-Added Tax stipulates that abnormal losses refer to losses other than normal losses in the process of production and operation, including:

One is the loss of natural disasters;

second, due to poor management, the goods are stolen, mildew and other losses;

The third is other abnormal losses. In the actual tax collection and administration, it is somewhat unreasonable that the input tax on natural disaster losses shall not be deducted, and the scope of "other abnormal losses" is not clear enough, it is difficult to accurately grasp, and there are disputes. To this end, Article 24 of the revised Detailed Rules for the Implementation of the Provisional Regulations on Value-Added Tax stipulates that abnormal losses are limited to losses caused by theft, loss, mildew and deterioration due to poor management.

To sum up, the asset losses in the above three circumstances are not abnormal losses as stipulated in the Detailed Rules for the Implementation of the Provisional Regulations on Value-Added Tax, and the input tax can not be transferred out. For those that have been financially transferred out, reverse accounting entries can be made.

There is no need to transfer out. Abnormal losses in the products and finished products consumed in the purchase of Fushan goods or taxable services shall not be deducted from the output tax.

Legal basis: Article 10 of the Provisional Regulations of the People's Republic of China on Value-Added Tax shall not be deducted from the output tax

1) Purchases of goods or taxable services for non-VAT-taxable items, VAT-exempt items, collective welfare or personal consumption;

2) Purchased goods and related taxable services with abnormal losses;

3) Purchased goods or taxable services consumed in products or finished products with abnormal losses;

4) The financial and taxation authorities shall guess the consumer goods for the taxpayer's own use as stipulated by the department;

5) The transportation costs of the goods specified in subparagraphs (1) to (4) of this Article and the transportation costs for the sale of duty-free goods.

It does not need to be transferred out, shall not be deducted, and is used for tax exemption, simple tax calculation, welfare, personal consumption, abnormal losses and abnormal losses, which refer to the theft, loss, mildew and deterioration of goods due to poor management, as well as the confiscation, destruction and demolition of goods or immovable property due to violations of laws and regulations, and the purchase of loan services, catering services, daily services for residents, and entertainment services. The loss of raw materials stolen, lost, mildew and scrap due to poor management needs to be transferred out of the input tax, and the following situations do not need to be transferred out of the input tax:

1. Due to quality problems, raw materials, semi-finished products and finished products cannot be used for production or sales and are scrapped;

2. Due to product quality problems, after-sales recalls occur, resulting in scrapping of materials;

3. The product is updated, and some special materials have lost their use value, resulting in scrapping.

Legal basis: Article 10 of the Provisional Regulations on Value Added Tax The input VAT of the following items shall not be deducted from the output VAT:

1) Purchased goods, services, services, intangible assets and immovable property for the purpose of taxable items under the simplified tax calculation method, value-added tax exemption items, collective welfare or personal consumption;

2) Abnormal losses of purchased goods, as well as related labor and transportation services;

3) Abnormal losses of goods purchased (excluding fixed assets) consumed in products and finished products, labor services and transportation services;

4) Other items specified in ***.

It depends on whether it is an abnormal loss, if the production is scrapped normally, it does not need to be transferred out, and if the management is not good, it must be transferred out.

1. According to Article 10 of the Provisional Regulations of the People's Republic of China on Value-Added Tax (Order No. 538 of the People's Republic of China), "the input tax of the following items shall not be deducted from the output tax: ......2) Purchased goods with abnormal losses, as well as related labor services and transportation services;

2. According to Article 24 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-Added Tax (Order No. 50 of the Ministry of Finance and the State Administration of Taxation), "the abnormal losses mentioned in Item (2) of Article 10 of the Regulations refer to the losses caused by theft, loss, mildew and deterioration caused by poor management.

The logistics partner in the loading and unloading of raw materials in the improper operation, resulting in our raw materials can not continue to use, our company let the quality of the Pitan control department to provide the certificate of no longer use, the leader signed the approval of the scrap out of the list to send to the logistics company notice and other information, to make the decision of scrapping raw materials. Does the input VAT involved in the raw material need to be transferred out?

Answer: According to the provisions of Article 10 (2) of the Provisional Regulations on Value-Added Tax, the input VAT shall not be deducted from the output VAT for the purchase of goods with abnormal losses, as well as related labor services and transportation services. According to Article 24 of the Detailed Rules for the Implementation of the Provisional Regulations on Value-Added Tax, abnormal losses refer to losses caused by theft, loss, mildew and deterioration due to poor management.

Therefore, the loss caused by the improper operation of the other party does not belong to the theft, loss, mildew and deterioration caused by poor management. Input VAT does not need to be transferred out.

1. Due to quality problems, raw materials, semi-finished products and finished products cannot be used for production or sales and are scrapped;

2. Due to product quality problems, after-sales recalls occur, resulting in scrapping of materials;

3. The product is updated, and some special materials have lost their use value and are scrapped.