Water, electricity and gas costs can be included in sales expenses and main business costs, all of which are profit and loss subjects. Electricity and water charges can also be included in sales expenses, and gas charges can be included in operating costs.
How much is the electricity charge? What tax-related issues should be paid attention to when collecting water and electricity charges?
Announcement (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.2018 No.28):
Article 18 Where an enterprise and other domestic enterprises (including affiliated enterprises) and individuals accept taxable value-added tax services (hereinafter referred to as taxable services), they shall share the expenses according to the principle of independent transactions. This enterprise shall use invoices and joint receipts as pre-tax deduction vouchers, and other enterprises receiving taxable services shall use joint receipts issued by this enterprise as pre-tax deduction vouchers.
Where the expenses incurred by an enterprise are shared with other enterprises and individuals receiving non-taxable services in China, the enterprise will use other external vouchers and split sheets other than invoices as pre-tax deduction vouchers, and other enterprises receiving non-taxable services will use split sheets issued by the enterprise as pre-tax deduction vouchers.
Article 19 The lessor issues invoices for water, electricity, gas, air conditioning, heating, communication lines, cable TV, Internet and other expenses as taxable items. The expenses incurred by an enterprise in renting (including the enterprise as a single lessee) the office and production site shall be deducted by the invoice before tax; If the lessor adopts apportionment, the enterprise shall take other external vouchers issued by the lessor as pre-tax deduction vouchers.
Can temporary utilities be included in the preliminary project cost?
If there is a calculated electricity fee in the contract price and settlement amount (it can be a single electricity fee calculated according to the actual table or included in the consumption quota), then the electricity fee generated in the construction process will be paid by the constructor. If the electricity fee is actually paid by the construction unit, it will be deducted from the project payment.
If the electricity fee is not calculated in the contract price and settlement amount, the construction unit shall pay the electricity fee to the electric power department.
In addition, according to the usual contract of the power supply department, the power consumption unit has no right to resell the power to others, so if the construction site next door is not your unit's project, it is suspected of violating the power consumption contract and may be held accountable by the power supply department.
Is the cost of water, electricity and gas an operating cost or a sales expense? There is no strict regulation on which accounting subject electricity, water and gas charges are placed, and they can also be placed under management expenses. Therefore, financial personnel can also determine which accounting subject to enter according to their specific purposes when dealing with accounts.