Who can explain the difference between VAT and enterprise income tax?

Value-added tax is a kind of turnover tax levied on the added value of many links such as commodity production, circulation and labor services or the added value of commodities. Enterprise income tax is a tax levied on the production and operation income and other income of domestic-funded enterprises and business units in China.

2. Different classifications

According to the different ways of tax deduction for purchased fixed assets, value-added tax can be divided into productive value-added tax, income value-added tax and consumption value-added tax. Enterprise income tax is divided into state-owned enterprise income tax, collective enterprise income tax, private enterprise income tax, Sino-foreign joint venture income tax, foreign enterprise income tax and foreign-invested enterprise income tax.

3, the tax object is different.

The object of enterprise income tax is the income obtained by taxpayers. Including sales of goods, provision of services, transfer of property, dividends, interest, rent, royalties, donations and other income. Units and individuals that sell goods or provide processing, repair and replacement services and import goods within the territory of People's Republic of China (PRC) are subject to value-added tax.

Extended data:

Taxes of VAT:

According to the different deduction methods of purchased fixed assets, value-added tax can be divided into:

Production value-added tax

Productive value-added tax means that when collecting value-added tax, only the part of the means of production belonging to non-fixed assets can be deducted, and the tax included in the value of fixed assets is not allowed to be deducted. The tax object of this kind of value-added tax is roughly equivalent to GDP, so it is called production value-added tax.

Income vat

Income-based value-added tax means that when collecting value-added tax, only the tax included in the depreciation part of fixed assets is allowed to be deducted, and the depreciation part is not included in the deduction. The tax object of this kind of value-added tax is roughly equivalent to national income, so it is called income-based value-added tax.

Consumption value-added tax

Consumer value-added tax means that when collecting value-added tax, all taxes included in the value of fixed assets are allowed to be deducted at one time. In this way, as far as the whole society is concerned, the means of production are excluded from the scope of taxation. The tax object of this kind of value-added tax is only equivalent to the value of social consumption materials, so it is called consumption value-added tax. From June 5438+1 October1in 2009, China has implemented consumption-oriented value-added tax in various regions of the country.

References:

Baidu Encyclopedia-Enterprise Income Tax

References:

Baidu Encyclopedia-VAT