Special invoices can be used for VAT input and output deduction
Input invoices, output invoices, and value-added tax
The invoice issued when purchasing raw materials is called an input invoice (e.g., 50 yuan), and the invoice issued when selling the finished product is called an output invoice (e.g., 60 yuan). The difference between the two is the added value (10 yuan), and the tax paid based on this is called value-added tax (VAT).
Only special invoices can be used to prove that the input is 50 yuan.
If the supplier issues a general invoice, the added value is 60 - 0 = 60, resulting in more tax to be paid.
Why do some businesses prefer to issue general invoices?
Small-scale taxpayers default to issuing general invoices, with lower tax rates (1%, 3%). If the quarterly turnover is within 300,000 yuan, VAT is exempt. Also, obtaining special invoices cannot be used for input-output deduction.
General taxpayers default to issuing special invoices, with higher tax rates (6%, 9%, 13%). Neither general nor special invoices are exempt from tax.
Corporate income tax
The portion of income minus expenses is subject to corporate income tax. Both general and special invoices can be used for deduction as proof of enterprise expenses, thereby reducing total corporate income and corporate income tax.
What is the difference between special invoices and general invoices?_哔哩哔哩_bilibili