What does the multiplication tax mean and what are the characteristics of the multiplication tax?

Value-added tax (VAT) is a turnover tax that takes the value-added generated by the production and circulation of goods and the provision of labor services as the object of taxation. The so-called "value-added" refers to the difference between the income obtained by the taxpayer from the sale of products or the provision of labor services within a certain period of time and the amount paid when purchasing goods and obtaining labor services, which is the added value created by the taxpayer in its production and business activities, which is equivalent to the amount of value created by living labor. From the perspective of final product consumption, the sum of the added value of each link in the process of production to circulation of commodities is the value of the final product.

Since it is difficult to calculate the value-added amount in the specific economic operation, the indirect calculation method is mostly adopted in the actual operation of using the value-added amount to calculate the value-added tax, that is, the sales amount of goods is used as the basis for calculating the tax, and the tax that has been paid in the previous one is allowed to be deducted from the tax amount, so as to realize the principle of increasing the tax according to the value-added factor. Depending on the scope of deductions, VAT can be divided into two types: "income" and "production". The tax deduction of the depreciated part of the purchased fixed assets is called "income-based" VAT; Deductions that are not allowed are called "production" VAT.

Advantages of implementing VAT:

Clause. 1. It is conducive to the implementation of the principle of fair taxation;

Clause. Second, it is conducive to the rationalization of production and operation structure;

Clause. Third, it is conducive to expanding international exchanges;

Clause. Fourth, it is conducive to the general, timely and stable acquisition of fiscal revenue by the state.

1. Taxpayers of VAT shall be taxpayers of VAT if they sell goods or provide processing, repair and repair services or import goods within the territory of the People's Republic of China.

2. Scope of VAT levy The scope of VAT levy includes: 1. Goods; 2. Taxable services; 3. Imported goods.

3. The VAT rate is divided into three levels: the basic tax rate is 17%, the low tax rate is 13% and the zero tax rate.

4. The basis for the calculation of value-added tax is the sales amount of the taxpayer for the sale of goods or the provision of tax-bearing services, and the basis for the calculation of imported goods is the prescribed composition of the tax.

5. Calculation of VAT payable.

1. The tax payable of general taxpayers is the current output tax - the current input tax.

2. The tax payable of small-scale taxpayers = the levy rate of sales (1 levy rate).

3. Tax payable on imported goods = (tariff paid** tariff 10 consumption tax) tax rate.

For example, if the final sales of a commodity is 100 yuan, the selling price and value-added amount of its production and circulation links are as follows:

Production and operation sales (yuan) value-added amount (yuan).

Raw material production links 20 20

Semi-finished product production links 45 25

Finished product production links 75 30

Wholesale link 90 15

Retail link 100 10

From this, it can be seen that the final sales of the product are 100 yuan, which is exactly equivalent to the raw material.

The sum of the value-added amount of each link from material production to commodity retail:

20 + 25 + 30 + 15 + 10) = 100 (yuan).

Due to the different political and economic conditions of each country, the value-added amount that is subject to taxation is taxed.

There is a certain difference between the determination of the basis and the theoretical value-added amount. Each country adds value by law.

amount is used as the basis for calculating and levying VAT. The so-called statutory value-added amount is regulated by the tax law.

The amount of value-added on the basis of which the VAT payable is calculated.

Theoretically, the value-added value of VAT refers to the part of the value newly created by the enterprise in the production process. Because VAT is only taxed on the amount of value-added, it is called "value-added" tax. Here's an example:

The production cost of a product is 80 yuan, and the price of the manufacturer is 100 yuan after production and processing, which has increased by 20 yuan. In fact, the value-added tax is only levied on the value-added 20 yuan (the purchase cost of 80 yuan can be deducted from the input tax), and the value-added tax to be paid by the manufacturer is 100 * 17% (output gold) - 80 * 17% (input tax) = yuan (tax payable). Similarly, assuming that the product is sold to the merchant at 100**, the merchant sells it at 150 yuan, and the value is added by 50 yuan in this link, then the tax payable by the merchant is equal to 150 * 17% (output tax) - 100 * 17% (input tax) = yuan.

I don't know if this explanation can understand the basic origin of VAT.

But first of all, sales and service should be separated. If they cannot be separated, they will be treated as mixed sales and will be subject to VAT. For example:

The sale of elevators is subject to VAT. After-sales service and maintenance are subject to business tax. If these two items cannot be separated (in one contract, on one invoice), they are subject to VAT.

This is involved in a similar sales tape installation business. Therefore, two contracts and two invoices are required. In this way, the after-sales and installation part can only pay business tax and not VAT.

Pure service industries pay business tax and do not pay VAT. Such as catering. Amusement.

Labor. technical consultation, etc.

Output tax - input tax = tax payable on the value-added part at the tax rate.

1.No double taxation.

VAT is calculated on the basis of value-added amount, and only the value newly created by the enterprise in the sales amount that has not been taxed is taxed. Therefore, theoretically, there is no problem of double taxation. However, due to the different types of VAT used, some still have the problem of partial double taxation.

2.It is both a general collection and a multi-link collection.

Although the traditional turnover tax is also generally levied on filial piety and multiple links, it is "levied in full", while the value-added tax is only levied on the part of the taxpayer's value-added in this link.

3.The same product has the same price and the same tax burden.

Under VAT, the same product, no matter how many production and business links it goes through, as long as its final selling price is the same, its overall tax burden is the same.