If the following taxable consumer goods are recovered by outsourcing or entrusted processing and used for continuous production of taxable consumer goods, the consumption tax paid by the entrusted party for outsourcing taxable consumer goods or entrusted processing taxable consumer goods (raw materials) can be deducted from the payable consumption tax. Consumption tax is a single-link taxation, and the deduction of consumption tax adopts the enumeration deduction method in the tax law, that is, the tax law stipulates that it can be deducted before it can be deducted. In addition, the consumption tax deduction is only in the production link, and the consumption tax paid in the wholesale link and retail link cannot be deducted. Mainly because of the different scope, the deduction of consumption tax is mainly outsourced and entrusted processing enterprises, while the deduction of value-added tax can be deducted as long as it meets the conditions of documents. Consumption tax is an in-price tax, and there are two ways to deduct the paid consumption tax:
1, continuously produce taxable consumer goods with the purchased taxable consumer goods,
2. Taxable consumer goods that continue to be produced after the resumption of taxable products subject to consumption tax.
The scope of consumption tax deduction is very limited. VAT is an additional tax. Value-added tax is a tax levied on the value-added of units and individuals who sell goods or provide processing, repair and replacement services and import goods. VAT deduction taxable amount = output tax amount-input tax amount.
Consumption tax can be deducted. The scope of consumption tax deduction is as follows:
1, buy cigarettes produced by duty-paid cut tobacco;
2. Cosmetics produced by outsourcing taxable cosmetic raw materials;
3. Skin care products and hair care products that are outsourced and taxed.
4. Precious jewelry, jewelry and jade (excluding gold and silver jewelry (inlaid jewelry)) produced by outsourcing duty-paid jewelry and jade raw materials;
5. Purchased firecrackers and fireworks that have been taxed;
6. Automobile tires produced by outsourcing taxable automobile tires (inner tubes and outer tires);
7. Motorcycles produced by outsourcing taxable motorcycle parts (such as refitting three-wheeled motorcycles with outsourced two-wheeled motorcycles).
legal ground
Provisional Regulations of People's Republic of China (PRC) Municipality on Value-added Tax
Article 3 Taxpayers engaged in projects with different tax rates shall separately account for the sales of projects with different tax rates; If the sales volume is not accounted for separately, a higher tax rate shall apply.