Regarding the definition of "taxes" within the scope of pre-corporate income tax deductions, Article 31 of the Implementation Regulations of the Enterprise Income Tax Law stipulates that taxes refer to all kinds of taxes and surcharges incurred by enterprises, excluding corporate income tax and deductible value-added tax (VAT). In contrast, Article 8, Clause 3 of the original Provisional Regulations on the Implementation Details of the Enterprise Income Tax Interim Regulations defined taxes as excise taxes, business taxes, urban and rural maintenance construction taxes, resource taxes, and land value-added taxes paid by taxpayers in accordance with regulations. Educational surcharges can be treated as taxes. The original regulations did not specify the pre-tax deduction of VAT; after the implementation of the Enterprise Income Tax Law, how VAT should be handled was explained in conjunction with both old and new policies through examples illustrating relevant changes from two aspects.
Firstly, regarding the input VAT. VAT is an extra-price tax, meaning that when taxpayers purchase goods, the price and the tax are separated. Therefore, can the input VAT for purchased goods never be deducted before enterprise income tax? This situation should be handled in several ways.
1. For the already offset input VAT of purchased goods. Since this portion of the input VAT does not participate in the calculation of cost and profit or loss, it is not allowed to be deducted before income tax.
Example: Company A is a general taxpayer of VAT. In October 2007, it purchased 10,000 items from another taxpayer at 10 yuan each, totaling 100,000 yuan, with tax amounting to 17,000 yuan. The accounting treatment was as follows: