VAT payable = Output VAT – Input VAT
If the input VAT is in excess of the output VAT, the balance will be carried forward to set off against future VAT liabilities.
Output VAT = Sales value × Tax rate
Input VAT is the amount paid by the taxpayer for buying goods and taxable services supported by either VAT invoices received from suppliers or VAT certificates issued by the Customs Office.
The Following input VAT are not creditable against the output VAT :
Purchase of fixed assets (excludes immovable properties)
Where the activities are subject to business tax
Tax-exempt items
Goods or taxable labor purchased for group welfare or personal consumption
Abnormal or extraordinary losses
Contact Our Consultant in Shanghai for more details:
Office: 13C,1399,Beijing Road,Shanghai,200040 China
Hotline: 400-820-2586 (English,Mandarin)
Phone: (8621)6279-1870 (English,Mandarin)
Fax: (021)6279-1180
Email : consultant.en@handao.net
