Paragraph 3 of Article 4 of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.23 (20 16) stipulates that when taxpayers provide construction services or the tax authorities issue VAT invoices on their behalf, the name of the county (city, district) and the name of the project where the construction services occur shall be indicated in the remarks column of the invoice. Construction finance personnel should be very familiar with this regulation, but there will be a lot of confusion in the process of actually issuing construction labor invoices. This paper will sort out the matters needing attention in the "remarks column" of construction service at one time.
First, the business scope that needs attention
Invoice for construction services-must be specified.
According to the document of fiscal number. 20 1636. Construction services refer to the construction, repair and decoration of various buildings, structures and their ancillary facilities, the installation of lines, pipelines, equipment and facilities, and other engineering operations. Including engineering services, installation services, repair services, decoration services and other construction services. That is to say, when selecting the tax classification code in the invoice, the construction industry category and the code starting with 305 belong to the scope of construction services, and the invoice must indicate the project address and project name.
It should be noted that construction labor invoices, whether ordinary invoices or special invoices, whether invoices issued by units or individuals, need attention.
Non-construction services related to construction services-no need to comment.
In practice, the construction industry is also closely related to other businesses, but not all businesses related to construction services need to be commented and judged according to the nature of specific businesses. For example, engineering design belongs to the "design service" in cultural and creative services; Architectural drawing audit belongs to "certification service" in certification consulting service; Cost consultation and fiscal consultation belong to the "consulting service" in judicial consulting services; Leasing construction equipment directly without the operator belongs to "tangible movable property leasing"; Plant conservation belongs to "other life services". The above does not belong to the construction service business, so there is no need to note when issuing invoices.
3. The situation of package expenditure-suggestion remarks
Article 6 of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.42 (20 18) stipulates that general taxpayers selling machinery and equipment and providing installation services should separately account for the sales of machinery and equipment and installation services, and the installation services can be taxed according to the items provided by Party A. In the construction industry, professional operation items are common, such as elevators, fire fighting, door and window installation and sales, etc. Sales of machinery and equipment and installation services can be regarded as part-time value-added tax. For the general contractor, this behavior is usually regarded as packaging expenditure.
When issuing an invoice, the seller can issue two enterprise names, amounts and corresponding tax rates in two columns on the same invoice. In this case, the address and name of the project must be indicated in the invoice column. If the sales of goods and the provision of installation services are invoiced separately, there is no doubt that the invoice for installation services must be indicated. Do you need comments on the invoice of commodity sales?
Personally, although it is not clear in the document that the invoice of materials and equipment needs to be noted, it belongs to the invoice of materials and equipment for packaging expenditure, and it is recommended to make comments.
2. What is the location and name of the project?
The location of the project, regardless of whether the taxpayer's project location is the same as the location of the institution, has been clearly stated in Announcement No.23, which is the name of the county (city, district) where the construction labor service takes place. In practice, most financial personnel will be accurate to the street, town and even house number when commenting. Personally, according to Announcement No.23, it is enough to put forward opinions to the counties (cities, districts) where the project takes place, but no matter how many opinions there are, it will not affect the validity of the invoice.
The project name, announcement No.23 did not explain what the project name was based on. In practice, for a project with a construction permit, fill in the name of the project contained in the permit, and for a project without a construction permit, take the name of the construction project contained in the construction project planning permit plus the corresponding service content as the project name. For sporadic projects with neither construction permit nor construction project planning permit, the project name specified in the contract shall prevail.
Three, construction labor invoices if you don't pay attention to or pay attention to non-standard tax risks.
If the invoices for construction services are not marked as required, the issuer's construction enterprises will have the tax risk of "not issuing invoices as required"; For the party accepting the invoice, there will be tax risk of "not obtaining the invoice according to the regulations", which will directly affect the deduction of value-added tax, land value-added tax and enterprise income tax.
VAT:
According to Caishui (2016) No.36 document, if the VAT deduction voucher obtained by the taxpayer does not conform to laws, administrative regulations or the relevant provisions of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC), the input tax shall not be deducted from the output tax.
According to Article 6 of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China AnnouncementNo. 17 (20 16), taxpayers should obtain legal and valid vouchers that comply with laws, administrative regulations and the provisions of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC), or they shall not deduct the subcontracted funds from the total price and other expenses obtained in accordance with the above provisions.
Land value-added tax:
According to People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.70 (20 16): After the reform of the camp, the taxpayer of land value-added tax should indicate the name of the county (city, district) where the construction services occurred and the project name in the remarks column of the invoice, otherwise it will not be included in the amount of land value-added tax deduction project.
Enterprise income tax:
According to Article 12 of the Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Issuing the Management Measures for Pre-tax Deduction Vouchers of Enterprise Income Tax (State Taxation Administration of The People's Republic of China Announcement No.28, 20 18), an enterprise obtains invoices that are printed privately, forged, altered, invalidated, illegally obtained by the drawer, falsely made out and filled out (hereinafter referred to as "non-compliant invoices"), and obtains invoices that do not conform to the provisions of national laws and regulations.
4. Can other contents be indicated in the remarks column?
The contents of the remarks column are divided into legal remarks and self-remarks. In the case of legal remarks, in order to reflect some specific business, the drawer can choose whether to remark other information. Take the subcontracting wages paid by the general contractor as an example. When the subcontractor issues the construction invoice for the general contractor, after indicating the project address and project name in the remarks column, it can also indicate "including the wages paid by the general contractor on behalf of the subcontractor through the special account for migrant workers' wages". However, it should be noted that the remarks column of the VAT invoice can accommodate up to 230 characters or 1 15 Chinese characters. If it exceeds the specified length, the billing software will automatically intercept it.
Financial personnel must pay attention to the remarks column when issuing invoices or collecting invoices for construction services. If there are no opinions or incorrect opinions, ask the other party to void the invoice and issue a new invoice. After all, once it is judged as a non-compliant invoice, it will lead to the risk that value-added tax, land value-added tax and enterprise income tax cannot be deducted, which is really unimaginable!