Is the VAT invoice for purchasing production equipment tax deductible?
Is the VAT invoice for purchasing production equipment tax deductible? Whether it can be deducted should first make clear the identity of the enterprise. If you are a general VAT taxpayer, according to the new Interim Regulations on the Administration of VAT Collection issued in 2009, you can calculate the input tax credit for the fixed assets (machinery and equipment) purchased for production and operation and obtained the special VAT invoice. However, small-scale VAT taxpayers who purchase production equipment, even if they obtain special VAT invoices, cannot calculate and deduct input tax. The implementation of VAT special invoice is a key step in the VAT reform. It is different from ordinary invoice, and not only has the function of commercial voucher. Since the implementation of tax deduction indicated by invoice, the buyer has to pay VAT to the seller. It has the function of tax payment voucher. More importantly, the VAT special invoice links all links between the initial production and final consumption of a product, maintaining the integrity of tax and reflecting the role of VAT. Do you understand this explanation?
