Construction industry "camp to increase" to welcome good
Release time:
2018-01-27
Before the notice of the Ministry of Finance and the State Administration of Taxation jointly issued "on the building services such as replacing business tax with value-added tax(VAT) pilot policy" (hereinafter referred to as the "notice"), building services "replacing business tax with value-added tax(VAT) pilot policy.
The notice is clear: "the general contractor of construction works provides engineering services for the foundation and main structure of housing construction, and the construction unit itself purchases all or part of steel, concrete, masonry materials and prefabricated components, and applies simple tax calculation method to calculate the tax."
At present, there are two ways to pay the value-added tax in the construction industry: the general tax method is 11%, the simple tax rate method is 3%. The construction project after the start of the contract in April 30, 2016, the general taxpayer is in accordance with the general tax method, the value added tax rate is 11%. The provisions on matters related to the pilot project of business tax to VAT change stipulates: "the general taxpayer's construction services provided for the project of a project can be assessed by the simple tax calculation method. The project of a power supply is the construction project of the whole or part of the equipment, material and power that is purchased by the Contracting Party of the project. " The notice "deleted" can be deleted from the original text and changed to "simple tax calculation method". That is to say, there is no other option for the general taxpayer to provide the construction services for a project. This means that, as long as the construction material procurement unit to project to the tax in accordance with the simple calculation, construction enterprises provide 3% value-added tax invoice. In the past, the construction enterprises are in a relatively weak position. This revision can be said to be beneficial to the construction enterprises. This is also the most exciting of the construction enterprises in the notice.
"Notice" that the taxpayer provides construction services to obtain pre payment, shall be received in the pre collection, to obtain the pre payment deductions payable the sub section after the balance, in accordance with the provisions of the state rate advance vat. Project suitable method of general tax tax rate of 2% of the state, the tax for the simple calculation project state rate of 3%.
Insiders pointed out that, in accordance with the regulations, taxpayers provide construction services across counties (cities or districts) within the same level administrative area, which is not applicable to Interim Measures for taxpayers to provide construction services value-added tax collection across counties (cities or districts). The pre payment is the time of tax payment, the VAT is paid at the place of service or the location of the institution, which has not changed compared with before. The notice was reconfirmed. But for businesses, pay part of the tax will reduce the occupied capital effect, is conducive to enterprise cash flow.
In the construction industry before carrying out the "camp to increase" pilot project, the business tax is paid in the construction services. After the pilot, the location of the VAT payment is the location of the institution. After the cancellation of the business tax, there was no tax on the place of construction services. The notice stipulates that: according to the current regulations, the value added tax shall be paid in the place where the construction services are paid. When the taxpayer receives the advance payment, the VAT will be paid in advance in the construction service. In accordance with the current regulations, no value added tax is required in the place of construction services, and the taxpayer receives the VAT in the location of the institution when the payment is received. " Although enterprises want to be able to pay taxes at the same place, in fact, enterprises enjoy the services provided by the building services and should be taxed. From the perspective of the whole industry, this policy is also conducive to the construction of the national unified market. (China Construction newspaper)
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