chapter I taxpayers and withholding agents
article 1 units and individuals that sell services, intangible assets or real estate (hereinafter referred to as taxable activities) within the people's Republic of China and China (hereinafter referred to as the territory) are value-added tax taxpayers, and shall pay value-added tax in accordance with these measures, but not business tax.
units refer to enterprises, administrative units, institutions, military units, social organizations and other units.
individuals refer to individual industrial and commercial households and other individuals.
Interpretation
This article is the basic provisions on taxpayers and the scope of collection.
according to the provisions of this article, taxpayers are units and individuals that sell services, intangible assets or real estate within the People's Republic of China. After May 1, 216, the above-mentioned taxpayers will pay value-added tax in accordance with the relevant provisions of the Implementation Measures for the Pilot Reform of Business Tax to Value-added Tax (hereinafter referred to as the "Pilot Implementation Measures").
selling services, intangible assets or real estate, specifically including: selling transportation services, postal services, telecommunications services, construction services, financial services, modern services, life services, intangible assets or real estate.
"unit" includes: enterprises, administrative units, public institutions, military units, social organizations and other units.
"individuals" include: individual businesses and other individuals. Other individuals refer to natural persons except individual industrial and commercial households.
the understanding and mastery of the concept of "domestic territory" shall be carried out in accordance with the relevant provisions of Article 12 of the Pilot Implementation Measures.
article 2 if a unit operates by contract, lease or affiliation, and the contractor, lessee and affiliated party (hereinafter referred to as the contractor) operate in the name of the employer, lessor and affiliated party (hereinafter referred to as the employer) and the employer bears relevant legal responsibilities, the employer shall be the taxpayer. Otherwise, the contractor shall be the taxpayer.
Interpretation
This article is about the definition of taxpayers under the mode of contracting, leasing and affiliated operation. It can be divided into the following two situations: 1. If the following two conditions are met at the same time, the employer shall be the taxpayer; 2. Operating in the name of the employer.
(2) the employer shall bear relevant legal responsibilities.
2. If the above two conditions are not met at the same time, the contractor shall be the taxpayer.
Article 3 Taxpayers are divided into general taxpayers and small-scale taxpayers.
Taxpayers whose annual taxable sales of VAT (hereinafter referred to as taxable sales) exceed the standards set by the Ministry of Finance and State Taxation Administration of The People's Republic of China are general taxpayers, while taxpayers who do not exceed the prescribed standards are small-scale taxpayers.
other individuals whose annual taxable sales exceed the prescribed standards are not ordinary taxpayers. Units and individual industrial and commercial households whose annual taxable sales exceed the prescribed standards but do not frequently engage in taxable activities may choose to pay taxes according to small-scale taxpayers.
Interpretation
This article is about the standards for the classification and division of pilot taxpayers.
to understand the provisions of this article, we should grasp it from the following three aspects:
1. Taxpayer classification
According to the current management mode of value-added tax in China, classified management is implemented for VAT taxpayers, which is still used in this VAT reform, and taxpayers are divided into general taxpayers and small-scale taxpayers. The division between small-scale taxpayers and ordinary taxpayers is based on the annual taxable sales of taxable acts. Its tax calculation method and voucher management are different and need to be treated differently.
II. Provisions for Taxpayers to Apply Small-scale Taxpayer Standards
The Provisions on Relevant Matters in the Pilot Project clearly states that the annual taxable sales standard for taxpayers with taxable activities is 5 million yuan (inclusive). Taxpayers with annual taxable sales exceeding 5 million yuan are general taxpayers; Taxpayers whose annual taxable sales do not exceed 5 million yuan are small-scale taxpayers. The Ministry of Finance and State Taxation Administration of The People's Republic of China can adjust the annual taxable sales standard according to the pilot situation.
The annual taxable sales refers to the accumulated VAT sales of taxpayers during the operating period of no more than 12 months, including sales with tax reduction or exemption, sales with overseas taxable activities and the part that has been deducted from the sales difference according to regulations. If the sales amount includes tax, it shall be converted into sales amount excluding tax according to the applicable tax rate or collection rate.
III. Two Special Provisions
(1) Other individuals whose annual taxable sales exceed the prescribed standards are not ordinary taxpayers.
(2) Units and individual industrial and commercial households that do not frequently engage in taxable activities may choose to pay taxes according to small-scale taxpayers. In addition, units and individual industrial and commercial households that sell goods, provide processing, repair and replacement services and have taxable activities, and do not often have taxable activities, can also choose to pay taxes according to small-scale taxpayers.
Article 4 A taxpayer whose annual taxable sales do not exceed the prescribed standards, who has sound accounting and can provide accurate tax information, may register with the competent tax authorities for general taxpayer qualification and become a general taxpayer.
sound accounting means being able to set up account books in accordance with the unified national accounting system and accounting according to legal and valid vouchers.
Interpretation
This article is about the provision that small-scale taxpayers can take the initiative to apply for general taxpayer qualification registration.
1. In practice, many small-scale taxpayers have established and improved the financial accounting system, which can provide accurate tax information and meet the management needs of indicating tax deduction with invoices. At this time, if a small-scale taxpayer applies to the competent tax authorities, it can be registered as a general taxpayer.
2. Sound accounting means being able to set up account books according to the unified national accounting system and accounting according to legal and valid vouchers. For example, a professional financial accountant can set up a general ledger and related subsidiary ledgers for accounting in accordance with the provisions of the financial accounting system; Be able to accurately calculate the value-added tax sales, output tax, input tax and tax payable; Be able to prepare accounting statements according to regulations, and truly reflect the production and operation status of enterprises.
being able to provide tax information accurately means being able to truthfully fill in the VAT tax return and other tax information in accordance with the VAT regulations, and declare and pay taxes on schedule. Whether it is "sound accounting" and "able to provide accurate tax information" is determined by the competent tax authorities of small-scale taxpayers.
According to the Announcement of State Taxation Administration of The People's Republic of China on Adjusting the Management of General VAT Taxpayers (State Taxation Administration of The People's Republic of China Announcement No.18, 215), since April 1, 215, general VAT taxpayers have implemented the registration system. Taxpayers only need to fill in the Registration Form of General VAT Taxpayers' Qualification to the competent tax authorities, and those who meet the requirements can be registered as general taxpayers. Our bureau has opened the function of online registration of general taxpayer qualification. Taxpayers only need to log in to the online tax service hall of Shanghai State Taxation Bureau and fill in the Registration Form of VAT General Taxpayer Qualification, so they can become general taxpayers without going to the front desk of tax service.
article 5 a taxpayer who meets the requirements of a general taxpayer shall register the qualifications of a general taxpayer with the competent tax authorities. Specific measures for registration shall be formulated by State Taxation Administration of The People's Republic of China.
unless otherwise stipulated in State Taxation Administration of The People's Republic of China, once registered as a general taxpayer, it shall not be converted into a small-scale taxpayer.
Interpretation
This article is about the provisions of the pilot VAT general taxpayer qualification registration.
1. The term "meeting the requirements of general taxpayers" as mentioned in this article refers to the taxpayer's taxable activities with annual sales exceeding 5 million yuan, which does not belong to the situation of not being registered as a general taxpayer as stipulated in Article 3 of the Pilot Implementation Measures;
taxpayers who meet the requirements of general taxpayers shall apply to the competent tax authorities for qualification registration. If they fail to apply for registration of general taxpayers' qualifications, the tax payable shall be calculated according to the sales amount at the VAT rate, and the input tax shall not be deducted, and special VAT invoices (including uniform invoices for tax-controlled motor vehicle sales) shall not be used.
2. Unless otherwise stipulated in State Taxation Administration of The People's Republic of China, once registered as a general taxpayer, it shall not be converted into a small-scale taxpayer. This provision is consistent with the current management mode of general VAT taxpayers.
3. If the original VAT general taxpayer has taxable behavior and should apply for registration as a general taxpayer according to the regulations, it is not necessary to re-register as a general taxpayer. The competent tax authorities shall prepare and serve the Notice of Tax Matters to inform taxpayers.
article 6 where the people's Republic of China and overseas (hereinafter referred to as "overseas") units or individuals engage in taxable activities in China and have no business institutions in China, the buyer shall be the VAT withholding agent. Unless otherwise stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China.
Interpretation
This article is about the provisions on VAT withholding agents.
different from the current principle of value-added tax collection, the occurrence of taxable behavior in China means that the seller or buyer of taxable behavior is in China. Moreover, due to the limitation of the current customs management object, that is, only the import and export goods are managed, all kinds of labor services have not been included in the scope of customs management, and the behavior involving cross-border provision of labor services will still be managed by the tax authorities.
To understand the provisions of this article, we should grasp it from the following two aspects:
1. If an overseas unit or individual has taxable behavior in China and has no business organization in China, the buyer shall be the VAT withholding agent.
the biggest difference between this article and the original policy is that the provision of withholding value-added tax by agents is cancelled.
second, when understanding the withholding agent stipulated in this article, it should be noted that the premise is that overseas units or individuals have not set up business institutions in China. If they do, their business institutions should be regarded as VAT taxpayers, so there is no problem of withholding agents.
Article 7 Two or more taxpayers may be regarded as one taxpayer for consolidated tax payment with the approval of the Ministry of Finance and State Taxation Administration of The People's Republic of China. The specific measures shall be formulated separately by the Ministry of Finance and State Taxation Administration of The People's Republic of China.
Interpretation
This article is a provision that two or more taxpayers can be regarded as one taxpayer for consolidated tax payment. The approval subjects of consolidated tax payment are the Ministry of Finance and State Taxation Administration of The People's Republic of China, and the specific measures are formulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China.
article 8 taxpayers shall conduct value-added tax accounting in accordance with the unified national accounting system.
Interpretation
After this camp reform, all business taxes will be changed to VAT. In the accounting treatment of value-added tax, the pilot taxpayers can follow the Provisions on Accounting Treatment of Enterprises in the Pilot Project of Changing Business Tax to Value-added Tax (Cai Shui [212] No.13).
chapter ii scope of taxation
article 9 the specific scope of taxable activities shall be implemented in accordance with the notes on sales of services, intangible assets and real estate attached to these measures.
Interpretation
This article is about the specific scope of taxable behavior.
specifically, it includes selling transportation services, postal services, telecommunications services, construction services, financial services, modern services, life services, transferring intangible assets or selling real estate.
article 1 the sale of services, intangible assets or real estate refers to the paid provision of services and paid transfer of intangible assets or real estate, except for the following non-business activities:
(1) government funds or administrative fees collected by administrative units that meet the following conditions at the same time.
1. Government funds approved by the State Council or the Ministry of Finance, and administrative fees approved by the State Council or the provincial people's government and its financial and price departments;
2. At the time of collection, the financial bills made by the financial departments at or above the provincial level (including the provincial level) shall be issued;
3. All the money received shall be turned over to the finance.
(2) employees employed by units or individual industrial and commercial households provide services for their units or employers to obtain wages.
(3) units or individual industrial and commercial households provide services for employees they employ.
(4) Other circumstances stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China.
Interpretation
This article is a provision on taxable behavior and non-business activities.
I. Taxable behavior
Taxable behavior refers to paid sales of services, intangible assets or real estate. Compensation refers to obtaining money, goods or other economic benefits.
II. Non-operating activities
Selling services, intangible assets or real estate in non-operating activities is not taxable, and VAT is not levied.
Non-operating activities include the following situations:
(1) Government funds or administrative fees collected by administrative units that meet the requirements at the same time.
for example, the activities of administrative fees charged by state organs in accordance with the provisions of laws and administrative regulations to perform state administrative functions.
different from the original provisions, the applicable subject of this article has changed from "non-enterprise unit" to "administrative unit". As the administrative unit itself has the function of performing state administration, the expression of "performing state administration" has been deleted compared with the original Caishui [213] No.16 document.
(2) employees employed by units or individual industrial and commercial households provide services for their units or employers to obtain wages.
for example, the driver hired by the company drives the shuttle bus for the employees of the company.
(3) units or individual industrial and commercial households provide services for employees they employ.
for example, the company provides shuttle buses to take its employees to and from work.
(4) Other circumstances stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China.
article 11 "paid" means obtaining money, goods or other economic benefits.
Interpretation
This article is a concrete explanation of paid service, paid transfer of intangible assets or paid in real estate, including the sale of real estate and the transfer of intangible assets in the form of investment shares.
article 12 selling services, intangible assets or real estate in China means: (1) the seller or buyer of services (excluding leased real estate) or intangible assets (excluding the right to use natural resources) is in China;
(2) The real estate sold or leased is in China;
(3) The natural resources for which the right to use natural resources is sold are in China;
(4) Other circumstances stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China.
Interpretation
This article is a specific provision on the sale of services, intangible assets or real estate in China, which can be grasped from the following two aspects:
(1) The seller or buyer of services (except leased real estate) or intangible assets (except the right to use natural resources) is in China. That is, domestic units or individuals who act as sellers are taxable in China, and overseas units or individuals who act as buyers are taxable in China.
for example, consulting services purchased by domestic units from overseas units belong to domestic sales services.
(2) The real estate sold or leased is in China, and the natural resources with the right to use natural resources sold are in China. It is emphasized that the subject matter corresponding to taxable behavior is in China, that is, whether it is a domestic unit or individual or an overseas unit or individual, as long as the subject matter of the above taxable behavior is in China, it belongs to taxable behavior in China.
article 13 the following situations do not belong to the sale of services or intangible assets in China:
(1) overseas units or individuals sell services that occur completely abroad to domestic units or individuals.
(2) overseas units or individuals sell intangible assets that are completely used overseas to domestic units or individuals.
(3) overseas units or individuals lease tangible movable property that is used completely abroad to domestic units or individuals.
(4) Other circumstances stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China.
Interpretation
This article refers to the specific provisions on services or intangible assets that are not sold in China, and adopts the exclusion method.