Yesterday in the "financial and tax elite*** discussed the wholesale or retail wall covering of a building materials company, package installation, how to deal with the tax issues, the author will be the views of the gods synthesized into words dedicated to netizens, for the reference of netizens.
One is the concept of mixed sales
According to Annex 1 of the Notice of the Ministry of Finance and the State Administration of Taxation on Comprehensively Promoting the Pilot Project of Replacing Business Tax with Value-Added Tax No. 36 of 2016Paragraph 1 of Article 40 of the Measures for the Implementation of the Pilot Project of Replacing Business Tax with Value-Added Tax stipulates that if a sales act involves both services and goods, it is a mixed sale.
A building materials company wholesales or retail wallcovering at the same time package installation, involving both goods sales and installation services, is a typical mixed sales.
The second is the general tax treatment of mixed sales
Paragraphs 1 and 2 of Article 40 of the Annex to Cai Shui 2016 No. 36 "Implementation Measures for the Pilot Project of Replacing Business Tax with Value-Added Tax" stipulate in principle that units engaged in the production, wholesale or retail of goods and individual industrial and commercial households shall pay VAT according to the sales of goodsThe mixed sales of other units and individual industrial and commercial households shall be subject to VAT according to the sales services.
Units and individual industrial and commercial households engaged in the production, wholesale or retail sale of goods, including units and individual industrial and commercial households that are mainly engaged in the production, wholesale or retail of goods and concurrently engaged in sales and services.
From this article, it can be read that the proportion of goods engaged in the production, wholesale or retail of goods accounts for more than 50%, and mixed sales are treated as sales of goods, otherwise they are treated as sales services.
Judging from this case, according to the above-mentioned treatment principle, the building materials company wholesales or retail wallcovering, package installation, and levied the applicable tax rate of 13% for the sale of goods, that is, the sale of wallcovering.
The third is the special treatment of mixed sales
First, Article 1 of the Announcement of the State Administration of Taxation [2017] No. 11 of the State Administration of Taxation on Further Clarifying the Issues Concerning the Collection and Administration of the VAT Reform, taxpayers who sell self-produced goods such as prefabricated houses, machinery and equipment, and steel structure parts and provide construction and installation services at the same time do not fall under the "Implementation Measures for the Pilot Project of Replacing Business Tax with Value-Added Tax" (Cai Shui 2016). Document No. 36) Article 40 of the mixed sales shall be accounted for separately for the sales of goods and construction services, and different tax rates or levy rates shall be applied respectively.
We can read out that the general taxpayers who provide construction and installation services while selling self-produced goods such as prefabricated houses, machinery and equipment, and steel structure parts are subject to general taxation on the sale of goods, and the provision of construction and installation services can be both general and simple taxation.
Second, Article 6 of the Announcement of the State Administration of Taxation [2018] No. 42 of the State Administration of Taxation on Clarifying Several Issues Concerning the Collection and Administration of Value-Added Tax (VAT) for Chinese-Foreign Cooperation in Running Schools stipulates two situations:
General taxpayers who sell self-produced machinery and equipment and provide installation services at the same time shall separately account for the sales of machinery and equipment and installation services, and the installation services can be taxed according to the simple tax calculation method selected by Project A.
If a general taxpayer sells purchased machinery and equipment and provides installation services at the same time, if the sales of machinery and equipment and installation services have been calculated separately in accordance with the relevant provisions of the concurrent operation, the installation services can be calculated according to the simple tax calculation method selected by the first project.
From the previous two documents, we can read that the special treatment of mixed sales should at least have "self-produced", the purchased goods are limited to machinery and equipment, and the wholesale or retail wallcovering package installation of building materials companies does not meet the characteristics of "self-production", so it is impossible to implement the special treatment of mixed sales.
Fourth, the expansion of special treatment for mixed sales
Gao Jinping, China Financial and Economic Publishing House, in the first and second lines of page 38 of the seventh series of "Analysis of Difficult Cases in Taxation", pointed out that according to the principle of "the same kind of business and the same caliber applicable to the policy", "taxpayers sell self-produced goods such as prefabricated houses, machinery and equipment, steel structure parts", and the "etc" here should refer to "other self-produced goods", including but not limited to other self-produced goods such as doors and windows, glass curtain walls, etc.
Netizen Tang Chaofeng reflected that in practice, he suggested that a building materials company that produced building materials sign two contracts and a sales contractAn installation contract, which is tax-recognized.
Fifth, tax planning for mixed sales
Finance and taxation elite*** netizens put forward two planning plans:
First, starting from the business license, the "construction and installation services" will be included in the business scope, and two contracts will be signed, one is the contract for the sale of goods;One is the installation service contract, the goods sales contract is subject to VAT according to the sales of goods, and the installation service is subject to VAT according to construction services, and for general taxpayers, the sales tax rate of goods is 13%;The construction labor tax rate is 9% or simple tax.
Second, the payment collected from the customer by the installation company is divided into two parts, the customer pays the payment to the installation company and the building materials company respectively, the building materials company pays the value-added tax according to the sales of goods, and the installation company chooses simple tax calculation according to the project or the contractor.
The author suggests two points:
First, both Option 1 and Option 2 should communicate with the in-charge tax authorities and obtain their approval.
Second, pay attention to the matching of the price of goods and services, which is reasonable and legal, and must not be wasted because of choking.