Glamor Economics

Chapter 135

Chapter 17 Section 8 The largest tax in my country - value-added tax
A company in Sichuan is engaged in pharmaceutical business, and has the right to operate retail, wholesale and import and export of medical devices, pharmaceuticals and health care products.From 2005 to 2006, in order to obtain illegal benefits, the company took advantage of its obtained qualifications for operating medicines and general VAT taxpayers, and paid 4% of the invoiced amount in the name of "management fees" without real goods transactions. The invoice fee was charged at 8%, and special value-added tax invoices were falsely issued to many units, with a false tax payment of more than 500 million yuan.

Falsely issuing high value-added tax invoices for others, regardless of whether the transaction is fictitious or not, the invoices issued are real. Based on this, Xinyikang Company should pay taxes at 17.5% of the invoiced amount.In the absence of real goods transactions, they falsely issued customs invoices from Shanghai, Shenzhen, and Tianjin Customs from other places on the condition of paying 4% of the face value of the invoice fee.The person in charge of the financial department of Xinyikang Company grandly declared the customs invoice obtained above to the tax bureau to offset the input tax of more than 3187 million yuan on the customs invoice.

Falsely issuing value-added tax invoices for others, and purchasing falsely issued customs invoices from others to offset taxes are all false, and there is no actual transaction. The "business opportunity" appeared.The company charges about 6% of the billing fee and pays 4% of the input bill, and the difference in the middle becomes the company's source of profit.

Of course, this behavior was eventually severely punished by the law.To understand the relevant situation of taxation, you must first understand value-added tax.Because value-added tax is not only the largest tax in our country, but also closely related to our lives.for example:
一件衬衣的税收的营业税税率为5%，生产环节的销售收入为60元，应纳税额为60×5%=3元；批发环节销售收入为80元，应纳税额为80×5%=4元；零售环节销售收入为100元，应纳税额为100×5%=5元。

传统流转税的这种课税制与现代化大生产和财政需要相矛盾，严重阻碍了专业化协作生产经营。法国政府对营业税制进行改革，并逐步演变为现代的增值税制。现代的增值税制，则可以克服传统流转税的弊端。仍以上例说明，生产环节的增值额为60元，应纳税额为60×5%=3元；批发环节增值额为80－60=20元，应纳税额为20×5%=1元；零售环节增值额为100－80=20元，应纳税额为20×5%=1元。则衬衣的整体税负为5元，各个环节的税负之和等于整体税负。

In theory, VAT is a tax on the added value of goods and services.However, in actual economic operation, the value-added part of goods and services is often difficult to calculate. If we do not have a simple method of collecting value-added tax, value-added tax cannot be truly implemented.So in reality, how does the government collect value-added tax easily and effectively?This must first understand the input tax and output tax.The formula for calculating input tax is:
Input tax amount = purchase price of purchased goods or taxable services × tax rate

The formula for calculating the output tax is:
Output tax = Sales x tax rate
For general taxpayers, the VAT payable is the current output tax minus the current input tax.Expressed as:
Tax payable for the current period = output tax for the current period - input tax for the current period
Let's take a simple example.

For example, automobile manufacturer A decides to purchase 1000 tons of high-quality steel from steel manufacturer B for the production of automobile chassis. The ex-factory price of high-quality steel in factory B is 3000 yuan per ton, so the ex-factory price of these 1000 tons of high-quality steel is 300 million yuan in total.However, if A wants to obtain this batch of steel products, he must pay B 351 million yuan, of which 300 million yuan is the sales amount, and 51 yuan (300×17%) is the value-added tax amount (assuming an increase tax rate of 17%).For factory A, the 51 yuan is input tax; for factory B, the 51 yuan is output tax.

Assuming that A sells 100 cars, the total sales volume is 1000 million yuan, and the price it charges customers is 1170 million yuan.For A, the 170 million yuan is the value-added tax output tax.Then the VAT payable by A is the output tax minus the current input tax, that is, 170-51=119 ([-] yuan).

In the actual collection process, the modern value-added tax system generally implements the "tax deduction method based on invoices", which not only simplifies the collection management procedures, but also forms a link between various production and operation links, effectively preventing tax evasion.

[links to related words]

Sales amount refers to the total price and extra-price fees collected by the taxpayer from the buyer for the sale of goods or taxable services, but does not include the amount of output tax collected.

If a general taxpayer is engaged in the production of goods or provides value-added taxable services, and the sales volume exceeds 100 million yuan, or the sales volume of taxpayers engaged in the wholesale and retail of goods exceeds 180 million yuan in a year, the accounting is sound. Taxpayers who are able to provide accurate tax information and have been approved by the competent tax authorities are collectively regarded as general taxpayers.

Small-scale taxpayers All taxpayers who do not meet the standards of general taxpayers shall be regarded as small-scale taxpayers.

The specific standards are:
([-]) For taxpayers engaged in the production of goods or provision of taxable services, the annual sales of value-added tax shall be

less than 100 million yuan;
(180) Taxpayers engaged in the wholesale or retail of goods, with annual taxable sales of less than [-] million yuan
of.

Small-scale taxpayers (including self-employed persons) who can accurately calculate output tax, input tax and tax payable in accordance with the accounting system and the requirements of tax authorities can be regarded as general taxpayers with the approval of the competent tax authority.

Value-added tax special invoice is a kind of invoice, which is designed according to the characteristics of value-added tax in order to meet the requirements of tax reform and strengthen the collection and management of value-added tax. It is a special invoice for general value-added tax payers.It not only has the function of ordinary invoice, but also is the voucher for the general VAT taxpayer to calculate the input tax amount that can be deducted from the output tax amount.Due to its special importance, the tax authorities implement special supervision and management methods for special value-added tax invoices that are different from general invoices.

(End of this chapter)