The tax rate for installation and maintenance of mechanical parking equipment is reduced to 3% and 6%


Published on:

2022-07-20

The installation services of mechanical parking equipment are taxed according to the simple tax calculation method (3% for installation services), and the maintenance services of mechanical parking equipment are subject to VAT according to "other modern services" (6% for maintenance services).

The tax rate for installation and maintenance of mechanical parking equipment is reduced to 3% and 6%

SAT

Announcement on Clarifying Certain Issues Concerning the Collection and Administration of Value-Added Taxes such as Sino-foreign Cooperation in Running Schools

Announcement No. 42 of 2018 of the State Administration of Taxation

The issues concerning the collection and administration of value-added tax such as Sino-foreign cooperative education are hereby announced as follows:

1. Overseas educational institutions and domestic schools engaged in academic education carry out Sino-foreign cooperative education, and the income obtained from providing academic education services is exempt from value-added tax. Sino-foreign cooperative education refers to educational and teaching activities jointly organized by Chinese and foreign educational institutions in accordance with the relevant provisions of the "Regulations of the People's Republic of China on Sino-Foreign Cooperation in Running Schools" (Order No. 372 of the State Council). The scope of the above-mentioned "diploma education", "schools engaged in academic education" and "income obtained from providing academic education services" shall be in accordance with the "Regulations on the Transition Policy for the Pilot Program of Replacing Business Tax with Value-Added Tax" (Cai Shui [2016] No. 36) The relevant provisions of Article (8) of Annex 3)di of the document shall be implemented.

2. Air transportation sales agency companies provide domestic air ticket agency services, deducting the net settlement of domestic air tickets collected from customers and paid to air transportation companies or other air transportation sales agency companies from the full price and extra-price fees obtained. The balance after the related expenses is the sales. Among them, the payment to the air transport enterprise shall be legal and valid documents based on the statement of the International Air Transport Association (IATA) Billing and Settlement Plan (BSP) or the receipt document of the air transport enterprise; the payment to other air transport sales agency enterprises , and the signed receipt between the agency enterprises is a legal and valid certificate. The air transport sales agency company will issue an itinerary to the purchaser for all the price and extra-price fees obtained, or issue an ordinary VAT invoice.

3. Taxpayers who transfer supplementary cultivated land quotas through the trading platform established by the provincial land administration department shall pay value-added tax according to the sales of intangible assets at a tax rate of 6%. The “supplementary cultivated land quota” mentioned in this announcement refers to the amount of cultivated land used for land occupation as confirmed by the provincial land administrative department in accordance with the relevant requirements of the “Land Administration Law of the People’s Republic of China” and the “Measures for the Balance Assessment of Cultivated Land Occupation and Compensation” by the competent land administration department of the State Council. Balance indicator.

4. Restricted shares formed by a listed company due to major asset reorganization, as well as the giveaway and transfer of shares bred from the above-mentioned shares during the period from the first day of resumption of stock trading to the day when the ban is lifted, if trading is suspended due to major asset reorganization, according to the "Regulations of the State Administration of Taxation" Announcement on Several Collection and Administration Issues in the Pilot Program of Replacing Business Tax with Value Added Tax (Announcement No. 53 [2016] of the State Administration of Taxation) to determine the purchase price according to Article 5 (3); if the listing has been suspended before the major asset restructuring, it shall be completed as a listed company After the asset reorganization, the kai price on the first day when the stock resumes listing is the buying price.

5. The fee or commission income obtained by the auction house from the entrusted auction shall be subject to value-added tax in accordance with the "brokerage agency service". The Circular of the State Administration of Taxation on Issues Concerning the Collection of Value-Added Tax and Business Tax on Auction Income Obtained by Auction Houses (Guo Shui Fa [1999] No. 40) shall cease to be implemented.

6. When general taxpayers sell self-produced machinery and equipment while providing installation services, they should calculate the sales of machinery and equipment and installation services separately. Installation services can be taxed according to the simple tax calculation method selected by A for the project.

Generally, taxpayers provide installation services while selling outsourced machinery and equipment. If they have calculated the sales of machinery and equipment and installation services separately in accordance with the relevant regulations on concurrent operation, the installation services can choose the simplified tax calculation method according to the project A. tax.

The maintenance service provided by the taxpayer to the machinery and equipment after installation and operation shall be subject to value-added tax in accordance with "other modern services".

7. For the business tax-related business of the taxpayer that occurred before May 1, 2016, including the business for which business tax has been declared and paid or the business tax has been repaid, if a supplementary invoice is required, an ordinary VAT invoice may be issued. The taxpayer should keep the relevant information completely for future reference.

This Announcement will come into force on the date of promulgation. The Announcement of the State Administration of Taxation on Issues Concerning the Streamlining and Consolidation of Value-Added Tax Collection Rates (Announcement of the State Administration of Taxation [2014] No. 36)di two and the Article 4 of the Announcement on Issues Concerning Tax Collection and Administration (Announcement No. di11 [2017] of the State Administration of Taxation) shall be repealed at the same time. Unhandled matters that have occurred before shall be implemented in accordance with the provisions of this announcement. Before May 1, 2016, if a taxpayer committed the taxable acts specified in Article 4 of this Announcement, if the business tax has been paid, no adjustment will be made.

hereby announced

State Administration of Taxation

July 25, 2018

Interpretation of relevant policies

​ 6. Regarding the taxpayer's sales of machinery and equipment while providing installation services, the tax calculation method for installation services and the applicable tax rate for subsequent machinery and equipment maintenance services.

The taxpayer sells machinery and equipment and provides installation services at the same time, including the following two situations:

(1) Taxpayers provide installation services while selling self-produced machinery and equipment

According to the current regulations, the taxpayer should account for the sales of machinery and equipment and installation services separately in this case. After the machinery and equipment are sold to Party A, they are then handed over to the machinery and equipment sales company for installation. The machinery and equipment can be regarded as the machinery and equipment for "A supply", and the installation services provided by the machinery and equipment sales company can also be regarded as A supply. For the installation services provided by the project, you can choose to apply the simple tax calculation method for tax calculation.

(2) Taxpayers provide installation services while selling purchased machinery and equipment

There are two situations in this case. First, if the taxpayer does not separately calculate the sales of machinery and equipment and installation services, the applicable tax items and tax rates should be determined in accordance with the relevant regulations on mixed sales. The second is that the taxpayer has separately calculated the sales of machinery and equipment and installation services in accordance with the relevant provisions of the concurrent operation. The machinery and equipment can also be regarded as the machinery and equipment for "A supply", and the installation services provided by the taxpayer can be regarded as For the installation services provided for Project A, choose to apply the simplified tax calculation method for tax calculation.

In addition, this "Announcement" also clarifies that the maintenance service provided by the taxpayer for the machinery and equipment after installation and operation shall be paid in accordance with "other modern services".

7. This Announcement will come into force on the date of issuance, and Article 4 of the Announcement of the State Administration of Taxation on Further Clarifying the Issues Concerning the Taxation and Administration of the Replacement of Business Tax with Value-Added Tax (State Administration of Taxation Announcement No. di11 [2017]) shall be repealed at the same time.

Policy Implementation History

01

On September 30, 2016, a letter was sent to the State Administration of Taxation with the document Heavy Machinery Xie Zi (2016) No. 047 "About the reduction of the tax rate for the installation service items of mechanical parking equipment manufacturing enterprises". The Ministry of Finance promulgated the "Implementation Measures for the Pilot Program of Replacing Business Tax with Value-Added Tax" in Caishui [2016] No. 36 "Notice on the Implementation of the Pilot Program of Replacing Business Tax with Value-Added Tax", in which Article 40 stipulates that the use of mechanical parking equipment A sale is defined as "mixed sale" because it involves both goods and installation services. In this way, the comprehensive tax rate of mechanical parking equipment will not decrease but increase after the change from business tax to VAT.

02

On the morning of October 30, 2016, at the State Administration of Taxation's Office of the Leading Group for the Reform of Business Taxation to Value-Added Tax, the relevant business leaders of the Value-Added Tax Division of the Department of Goods and Labor Tax of the State Administration of Taxation presided over a meeting to conduct special research on the operation of mechanical parking equipment enterprises. Amend related matters. The Secretary-General of the Parking Equipment Working Committee of China Heavy Machinery Industry Association and representatives of relevant business leaders and financial leaders attended the meeting and reported on the problems encountered by parking equipment companies after the business tax reform. The relevant person in charge of the National Taxation Bureau listened carefully to the opinions of various enterprises, and pointed out: According to the materials submitted by the enterprises, the parking equipment enterprises hold the "Special Equipment Manufacturing License" and "Special Equipment Installation, Transformation and Maintenance License", which can clearly distinguish equipment production. For the installation business, it can still be implemented according to the 23rd document of 2011. Its production and manufacturing part is subject to 17% value-added tax based on production equipment, and the installation part is implemented according to the category of "construction services" and "other construction services". He also pointed out at the end that the content determined at this meeting will be included in the compilation of relevant policies of the State Administration of Taxation on replacing business tax with value-added tax and will be released before the end of the year. After returning, each enterprise shall report to the local tax department and implement the matters determined at this meeting. If local tax authorities have any doubts, they can consult the Value-Added Tax Division of the Department of Goods and Labor Tax of the General Administration of Taxation through the local tax bureau.

03

On April 20, 2017, the State Administration of Taxation Announcement No. 2017 di11 "Announcement on Further Clarifying the Issues Concerning the Taxation and Administration of the Replacement of Business Tax with Value-Added Tax" Di 1: Taxpayers sell prefabricated houses, machinery and equipment, steel structural parts, etc. The provision of construction and installation services at the same time as the goods does not belong to the mixed sales stipulated in Article 40 of the "Measures for the Implementation of the Pilot Implementation Measures for Replacing Business Tax with Value-Added Tax" (Cai Shui [2016] No. 36 Document), and the sales of goods and construction services shall be accounted for separately. , and different tax rates or collection rates apply. Article 4: General taxpayers provide installation services while selling elevators, and their installation services can be taxed according to the simple tax calculation method selected by the project A. The maintenance service provided by the taxpayer for the elevator after installation and operation shall be subject to VAT in accordance with "other modern services".

In this announcement, the issue of tax collection and management related to the change from business tax to value-added tax for elevators is clearly stated, and the issue of taxation and management of the change from business tax to value-added tax for mechanical parking equipment is not clearly stated.

04

On February 9, 2018, a letter was issued to CJXZZ (2018) No. 006, "Letter on Please Further Clarify the Issues Concerning Taxation of the Installation Business of Mechanical Parking Equipment from Business Taxation to Value Added Tax and Adopting Simple Taxation Method" According to the State Administration of Taxation, due to the investigation and enterprise report of the Parking Equipment Working Committee of China Heavy Machinery Industry Association, only a few enterprises have implemented the simple tax calculation method (17% for sales of parking equipment, 3% for installation services, and 6% for maintenance services). ) for tax purposes. However, although most companies have done a lot of communication work, the local tax authorities still use the mixed sales tax calculation method (11%) to calculate tax because there is no written basis, and even some companies still implement the same tax rate (17%) for equipment sales.

It is hoped that the State Administration of Taxation can consider the characteristics of the mechanical parking equipment industry as appropriate, and refer to the spirit of the State Administration of Taxation Announcement No. di11 in 2017 to clarify that "general taxpayers provide installation services while selling parking equipment, and their installation services can be in accordance with A For the project choose to apply the simple tax calculation method to calculate the tax. The maintenance service provided by the taxpayer for the elevator after installation and operation shall be subject to VAT in accordance with "other modern services". That is to say, it is clarified that general taxpayers selling mechanical parking equipment can implement the same tax calculation method as selling elevators (17% for sales of parking equipment, 3% for installation services, and 6% for maintenance services)."

05

On April 2, 2018, the mechanical parking system was collected with the letter of Zhongzhong Parking Association (2018) No. 006 "About Please Further Clarify the Issues Concerning the Taxation of the Installation Business of Mechanical Parking Equipment from Business Tax to Value Added Tax and Adopting Simple Taxation Method" Parking equipment manufacturers' demands for tax reduction, and promptly report the industry demands to the State Administration of Taxation.

06

On July 25, 2018, the State Administration of Taxation Announcement No. 42 of 2018 "Announcement on Clarifying Certain Issues Concerning the Collection and Administration of Value-Added Taxes in Sino-foreign Cooperation in Running Schools", according to Article 6 of this announcement, mechanical parking equipment installation services The tax can be calculated according to the simple tax calculation method selected by the project A; for the maintenance services provided by the machinery and equipment after installation and operation, the value-added tax shall be paid according to "other modern services".

From the implementation of this announcement, Article 4 of the Announcement of the State Administration of Taxation on Further Clarifying the Issues Concerning the Collection and Administration of the Replacement of Business Tax with Value Added Tax (Announcement of the State Administration of Taxation [2017] No. di11) shall be repealed at the same time. Article 4 is: General taxpayers provide installation services while selling elevators, and their installation services can be taxed according to the simple tax calculation method selected by the project A. The maintenance service provided by the taxpayer for the elevator after installation and operation shall be subject to VAT in accordance with "other modern services".