What is eligible VAT Input?

VAT input can be deducted only with special VAT invoices obtained from sellers or tax certificates obtained from Customs.

Are all VAT Input deductible?

No. Non-deductible VAT input comprise following cases. a)Purchase of fixed assets (deductible inNorth-east China only) b)Goods or taxable services for use in non-taxable projects c)Goods or taxable services for extraordinary losses, such as natural disaster, theft or poor management, etc. d)Purchase of goods from small-scale taxpayers

When should I pay VAT?

The VAT assessable period can be one day, three days, five days, ten days, fifteen days or one month. The actual assessable period of the taxpayer shall be determined by the competent tax authorities according to the magnitude of the tax payable of the taxpayer. In case VAT cannot be assessed in regular periods, it […]

How the VAT payable of a normal taxpayer is calculated?

Normal taxpayers need to separately calculate the VAT output and VAT input for the current period. Then the difference between the VAT output and VAT input shall be the actual amount of VAT payable.   VAT payable = VAT Output for the current period* – VAT Input for the current period** *VAT Output = Sales […]