The calculation formula is: taxable amount = current output tax amount-current input tax amount

output tax amount = sales amount × tax rate

sales amount = sales amount including tax ÷(1+ tax rate)

output tax amount: refers to the value-added tax amount calculated according to the sales amount and VAT rate when taxpayers provide taxable services.

input tax: refers to the value-added tax paid or borne by taxpayers when they purchase goods or accept processing, repair and replacement services and taxable services.

Extended information

Introduction to tax payment procedures:

(1) Apply for the procedures of general taxpayers

Apply. Taxpayers shall submit a written application report to the competent national tax authorities, and provide certificates of qualified tax payers, annual sales (business) and other relevant documents and materials. Branches shall also provide the relevant documents or copies of the head office and receive the Application Confirmation Form for VAT General Taxpayers in triplicate.

the taxpayer shall truthfully fill in the items listed in the application confirmation form for general taxpayers of value-added tax item by item, and submit the application confirmation form for general taxpayers of value-added tax to the competent national tax authorities for approval within ten days.

After the taxpayer submits the Application Confirmation Form for VAT General Taxpayer and the relevant documents and materials provided, it will be audited by the competent national tax authorities and reported to the competent national tax authorities for approval, and the first page of the copy of the Tax Registration Certificate will be stamped with the special seal for confirmation of VAT General Taxpayer. Taxpayers shall obtain a copy of the tax registration certificate of general taxpayers from the competent national tax authorities within the prescribed time limit.

(II) Annual inspection of general taxpayers

General taxpayers must accurately calculate the input and output tax according to the requirements of the state tax authorities, provide tax payment materials, pay the tax payable in full and on time, use special VAT invoices according to law, and accept the annual general taxpayer qualification inspection and management organized by the state tax authorities.

In any of the following circumstances, the general taxpayer shall make regular rectification according to the requirements of the state tax authorities, and shall not deduct the input tax within five months, and shall not receive and purchase special invoices:

(1) The general taxpayer whose annual sales do not meet the prescribed standards and the self-employed person identified as the general taxpayer have imperfect accounting or are unable to provide accurate tax payment information to the state tax authorities;

(2) Failing to purchase, issue and keep special VAT invoices according to the Provisions on the Use of Special VAT Invoices;

(3) serious tax arrears, failure to take active measures to pay taxes, and ineffective after repeated reminders by the state tax authorities.

in any of the following circumstances, the general taxpayer shall be disqualified and be treated as a small-scale taxpayer, where the enterprise whose annual sales volume does not reach the prescribed standard and the individual operator whose annual sales volume reaches the prescribed standard; Enterprises whose annual sales reach the prescribed standards shall not deduct the input tax, and pay the tax according to the sales amount according to the VAT rate, and shall not receive and purchase special invoices, and pay off the remaining special invoices:

(1) There are illegal and criminal acts of falsely issuing special invoices;

(2) illegal and criminal acts of tax evasion and defrauding export tax rebates;

(3) General taxpayers whose annual sales do not meet the prescribed standards and self-employed persons identified as general taxpayers still cannot improve their accounting or provide accurate tax payment information to the state tax authorities after the prescribed time limit;

(4) An enterprise whose annual sales amount reaches the prescribed standard and is recognized as a general taxpayer has imperfect accounting or is unable to provide accurate tax payment information to the national tax authorities;

(5) there is no fixed place for production and business operation.

Reference: Baidu Encyclopedia-Tax Payment