How to issue invoices and pay VAT on multi-purpose prepaid cards?

The hotel issues a stored-value card (multi-purpose prepaid card), and the cardholder can use it for consumption (including accommodation, dining, entertainment, shopping, etc.) at any hotel in the group. How to pay VAT when receiving payment And issue an invoice?

Value-added tax issues on multi-purpose prepaid cards

According to the provisions of Article 4 of the State Administration of Taxation Announcement No. 53 of 2016, the equivalent amount of RMB funds obtained by a payment institution from the sale of multi-purpose cards, or The recharge funds received from multi-purpose card holders are accepted and no value-added tax is paid. Payment institutions may issue ordinary VAT invoices to card purchasers and rechargers in accordance with the provisions of Article 9 of this announcement, but may not issue special VAT invoices.

When a cardholder uses a multi-purpose card to purchase goods or services from a special merchant that has signed a cooperation agreement with a payment institution, the special merchant shall pay VAT in accordance with current regulations and shall not issue VAT invoices to the cardholder. .

So, the card issuer does not pay VAT, but the merchant who actually provides consumer goods or services pays VAT. Invoices are issued by the card issuer for non-taxable prepaid cards.

Relevant regulations:

"Announcement of the State Administration of Taxation on Certain Collection and Management Issues in the Pilot Program of Replacing Business Tax with VAT" (State Administration of Taxation Announcement No. 53, 2016)

4. The payment institution's prepaid card (hereinafter referred to as "multi-purpose card") business shall be implemented in accordance with the following regulations:

(1) The payment institution shall obtain equivalent RMB funds from the sale of multi-purpose cards, or accept multi-purpose card holders The recharge funds obtained by cardholders do not pay VAT. Payment institutions may issue ordinary VAT invoices to card purchasers and rechargers in accordance with the provisions of Article 9 of this announcement, but may not issue special VAT invoices.

Payment institutions refer to card issuers that have obtained the "Payment Business License" issued by the People's Bank of China and are allowed to handle the "prepaid card issuance and acceptance" business and the acceptance institutions that are approved to handle the "prepaid card acceptance" business. .

Multi-purpose card refers to a prepaid value issued by the card issuer in a specific carrier and form, which can be used to purchase goods or services outside the card issuer.

(2) The payment institution shall pay value-added tax in accordance with the current regulations on the handling fees, settlement fees, service fees, management fees and other income derived from issuing or accepting multi-purpose cards and handling related fund collection, payment and settlement business. .

(3) When a cardholder uses a multi-purpose card to purchase goods or services from a special merchant that has signed a cooperation agreement with a payment institution, the special merchant shall pay value-added tax in accordance with current regulations and shall not issue any VAT to the cardholder. VAT invoice.

(4) When the special merchant receives the sales payment settled by the payment institution, it shall issue a general value-added tax invoice to the payment institution and indicate "received prepaid card settlement amount" in the remarks column. It shall not issue value-added tax invoices. Special tax invoice.

The general VAT invoice obtained by the payment institution from the special merchant shall be kept for future reference as a proof that it does not pay VAT when it sells multi-purpose cards or accepts multi-purpose card recharge to obtain advance funds.

9. "Announcement of the State Administration of Taxation on Comprehensive Promotion of the Pilot Program of Replacing Business Tax with Value-Added Tax on Matters Related to Tax Collection Administration" (State Administration of Taxation Announcement No. 23, 2016) Attachment "Commodity and Service Tax Classification and The following adjustments have been made to the classification codes in Coding (Trial). Taxpayers should upgrade the VAT tax control and invoicing software to the latest version (V2.0.11):

(11) Add 6 "No sales occurred" "Non-taxable items of conduct" is used when a taxpayer receives payment but no sale of goods, taxable labor, services, intangible assets or real estate occurs.

The "non-taxable items that have not been sold" include 601 "Sales and recharging of prepaid cards", 602 "Advance receipts from sales of self-developed real estate projects", 603 "Declared and paid business tax but not invoiced" Invoicing”.

Use the code of "non-taxable items without sales", the invoice tax rate column should be filled with "non-taxable", and special value-added tax invoices are not allowed.