Do You Really Understand the VAT Exemption, Credit and Refund Policy?

In the tax treatment of enterprises, the VAT Exemption, Credit and Refund Policy is an important and complex concept, which is related to the capital flow and cost control of enterprises. Today, let's explore the mysteries of the VAT Exemption, Credit and Refund Policy together.

The VAT Exemption, Credit and Refund Policy mainly applies to manufacturing enterprises that export self-produced goods and goods regarded as self-produced. The "exemption" of tax means that for the self-produced goods exported by manufacturing enterprises, the VAT in the production and sales links of the enterprise is exempted; the "credit" of tax means that for the raw materials, components, fuels, power, etc. consumed by manufacturing enterprises in exporting self-produced goods, the input tax amounts that should be refunded are used to offset the tax payable for domestic sales of goods; the "refund" of tax means that when the input tax amounts that should be offset in the current month for the self-produced goods exported by manufacturing enterprises are greater than the tax payable, the un-offset part will be refunded.

Its calculation process is relatively complex and is generally divided into the following steps. First, calculate the current period's tax payable. The formula is: Current period's tax payable = Output tax amount of domestic sales of goods in the current period - (Input tax amount in the current period - Tax amounts that are not eligible for exemption, credit and refund in the current period) - Tax amount carried forward from the previous period. Here, the Tax amounts that are not eligible for exemption, credit and refund in the current period = FOB price of exported goods × Foreign exchange RMB quotation × (Tax rate for exported goods - Tax refund rate for exported goods) - Deduction amount of tax amounts that are not eligible for exemption, credit and refund. And the Deduction amount of tax amounts that are not eligible for exemption, credit and refund = Price of tax-free purchased raw materials × (Tax rate for exported goods - Tax refund rate for exported goods).

Secondly, calculate the tax amount of exemption, credit and refund. The formula is: Tax amount of exemption, credit and refund = FOB price of exported goods × Foreign exchange RMB quotation × Tax refund rate for exported goods - Deduction amount of tax amount of exemption, credit and refund. Among them, the Deduction amount of tax amount of exemption, credit and refund = Price of tax-free purchased raw materials × Tax refund rate for exported goods. Finally, compare the size of the current period's tax payable and the tax amount of exemption, credit and refund to determine the tax refund amount and the tax credit amount. If the current period's tax payable is less than zero and its absolute value is less than or equal to the tax amount of exemption, credit and refund, then the current period's tax refund amount = Absolute value of the current period's tax payable, and the current period's tax credit amount = Tax amount of exemption, credit and refund - Current period's tax refund amount; if the current period's tax payable is less than zero and its absolute value is greater than the tax amount of exemption, credit and refund, then the current period's tax refund amount = Tax amount of exemption, credit and refund, and the current period's tax credit amount = 0.

Suppose that Mr. Zhang's Zhongshitong Company is a manufacturing export enterprise. In XX month of 20XX, the sales amount of domestic sales of goods was 1 million yuan, and the output tax amount was 130,000 yuan; the FOB price of exported goods converted into RMB was 2 million yuan, the tax rate for exported goods was 13%, and the tax refund rate was 10%. The input tax amount obtained from purchasing raw materials, etc. in the current month was 200,000 yuan, and the tax amount carried forward from the previous period was 30,000 yuan.

First, calculate the Tax amounts that are not eligible for exemption, credit and refund in the current period: 200 × (13% - 10%) = 60,000 yuan. Current period's tax payable = 130,000 - (200,000 - 60,000) - 30,000 = -40,000 yuan. Tax amount of exemption, credit and refund = 200 × 10% = 200,000 yuan. Because the absolute value of the current period's tax payable, which is 40,000 yuan, is less than the tax amount of exemption, credit and refund, which is 200,000 yuan, the current period's tax refund amount = 40,000 yuan, and the current period's tax credit amount = 200,000 - 40,000 = 160,000 yuan.

For enterprises, accurately understanding and applying the VAT Exemption, Credit and Refund Policy can not only reduce the tax burden of enterprises, increase the cash flow of enterprises, but also enhance the competitiveness of enterprises in the international market. Enterprises should strengthen the learning of relevant policies by financial personnel, standardize accounting treatment, ensure the accuracy of tax declaration, and fully enjoy the policy dividends.

The VAT Exemption, Credit and Refund Policy seems complex, but as long as you deeply understand its principles and calculation methods and use them reasonably, it can bring tangible benefits to enterprises. It is hoped that all enterprises can attach importance to and do a good job in the VAT Exemption, Credit and Refund Policy, and achieve better development on the premise of compliance. Everyone is also welcomed to discuss and exchange on issues related to the VAT Exemption, Credit and Refund Policy.