Do enterprises pay taxes on subsidies for purchasing new energy vehicles? How to carry out accounting treatment

The Notice on Continuing to Do a Good Job in the Promotion and Application of New Energy Vehicles (Caijian [2013] No.551) stipulates that the subsidy object of the central financial subsidy fund for new energy vehicles is consumers, who will pay the subsidy after deducting it from the sales price. The central government will allocate subsidy funds to new energy automobile manufacturers. After the product is sold, the production enterprise shall submit an application for pre-allocation of subsidy funds to the finance and science and technology departments where the enterprise is registered at the end of each quarter, and the local finance and science and technology departments shall report it to the Ministry of Finance and the Ministry of Science and Technology step by step after examination. The four ministries and commissions will allocate subsidy funds to relevant enterprises after the audit.

Cities listed in the promotion and application of new energy vehicles by the state will also formulate local financial subsidy funds for new energy vehicles accordingly, and consumers will pay according to the sales price of new energy vehicles after deducting central and local subsidies. For example, the Measures for Financial Subsidies for the Promotion and Application of New Energy Vehicles in Xiamen stipulates that large and medium-sized new energy bus manufacturers in our city sell to users in our city at the price after deducting the supporting subsidies from the central and municipal governments, and the municipal finance directly allocates local subsidies to automobile manufacturers. New energy vehicles sold and licensed in our city (except for large and medium-sized buses), if there are no automobile production enterprises in our city, must be registered in Xiamen with an independent legal person qualification for a unified application, and the Municipal Finance Bureau will allocate local subsidies to automobile sales organizations. Consumers pay according to the sales price of new energy vehicles after deducting subsidies from the central government and our city.

It can be seen that the central subsidy for new energy vehicles is allocated to automobile production enterprises by the financial department, and the local subsidies are allocated to automobile production enterprises or automobile sales organizations by the local finance. However, the actual subsidy object of this subsidy is consumers, and consumers use subsidies to deduct the sales price.

The scope of subsidies for new energy vehicles is: pure electric vehicles, plug-in hybrid vehicles (including extended range) and fuel cell vehicles. According to the provisional regulations on consumption tax, pure electric vehicles do not belong to the scope of consumption tax.

Article 22 of the Annex/KLOC-0 of the Notice on Incorporating Railway Transportation and Postal Services into the Pilot Project of Changing Business Tax to VAT (Caishui [20 13] 106) stipulates that the following input taxes are allowed to be deducted from the output tax: (1) Special VAT invoices obtained from sellers or providers (including special VAT invoices for goods transportation).