The tax calculation methods of VAT include the general method of taxation and the simplified method of tax calculation. Taxation methods of VAT include general taxation method and simple taxation method.
1. General taxpayers shall apply the general tax calculation method for taxable acts.
The taxable amount of the general tax calculation method refers to the balance of the current output tax after deducting the current input tax. The formula for calculating the taxable amount:
Taxable amount = current output tax - current input tax
2. General taxpayers may choose to apply the simplified tax calculation method to calculate the tax when they engage in specific taxable behaviors stipulated by the Ministry of Finance and the State Administration of Taxation, but once the choice has been made, the method may not be changed within 36 months.
Small-scale taxpayers can apply the simplified tax calculation method for taxable behavior.
The taxable amount of the simplified tax calculation method refers to the value-added tax calculated according to the sales amount and the value-added tax levy rate, with no input tax deduction. The formula for calculating the taxable amount:
Taxable amount=Sales×Levy rate