Zhaotong Accounting Agency: Announcement No. 69 of the State Administration of Taxation solves 10 tax collection and management issues in the replacement of business tax with VAT

State Administration of Taxation

Announcement on Issues Concerning the Provision of Construction Services Abroad

State Administration of Taxation Announcement No. 69 of 2016

In order to further promote the smooth operation of the comprehensive business tax-to-VAT reform pilot, the taxation and management issues related to the provision of construction services overseas are now announced as follows:

1. Domestic units and individuals provide construction for projects with construction sites overseas For services, tax exemption registration shall be handled in accordance with Article 8 of the "Announcement of the State Administration of Taxation on the Issuance of the Measures for the Administration of Value-Added Tax Exemption for Cross-border Taxable Activities in Replacement of Business Tax with Value-Added Tax (Trial)" (State Administration of Taxation Announcement No. 29, 2016) During the formalities, if the construction contract signed with the contractor indicates that the construction location is overseas, other supporting materials proving that the project is overseas are no longer required.

2. When domestic entities and individuals provide tourism services overseas and go through tax exemption registration procedures in accordance with Article 8 of the State Administration of Taxation Announcement No. 29 of 2016, they must use one of the following materials as the service location overseas. Certification materials:

(1) If the tourism service provider sends business personnel to accompany the traveler out of the country, a copy of the first page of the exit certificate and the exit record page of the outbound business personnel.

If there are more than 2 outbound business personnel, only copies of the exit certificates of 2 of them need to be provided.

(2) Copies of the first page and exit record page of the travel service purchaser’s exit document.

If there are more than 2 purchasers of travel services, you only need to provide copies of the exit documents of 2 of them.

3. Overseas entities and individuals that enjoy the policy of exempting international transportation services from VAT, when going to the competent tax authorities to apply for tax exemption registration, the filing materials submitted include:

(1) About A description of the taxpayer's basic information and business introduction;

(2) A copy of the tax agreement or international transport agreement based on it.

4. If a taxpayer provides construction services and the project contractor deducts the pledge deposit or deposit from the project payment payable, and no invoice is issued, the amount shall be calculated on the day when the taxpayer actually receives the pledge deposit or deposit. The time when tax liability occurs.

5. Taxpayers that rent serviced apartments on a long-term (short-term) basis and provide supporting services shall pay value-added tax as accommodation services.

6. Overseas units conduct examinations in the country through the Examination Center of the Ministry of Education and its affiliated units. The Examination Center of the Ministry of Education and its affiliated units shall deduct the examination fees paid to overseas units from the examination fee income obtained. For sales, value-added tax is paid according to the provision of "education auxiliary services"; value-added tax is withheld uniformly on examination fees collected and paid to overseas units. The Examination Center of the Ministry of Education and its directly affiliated units shall not issue special VAT invoices for examination fees collected and paid to overseas units on their behalf, but may issue ordinary VAT invoices.

7. When taxpayers provide visa agency services, the full price and extra-price fees obtained by taxpayers shall be deducted from the visa fees collected from the service recipient and paid on their behalf to the Ministry of Foreign Affairs and foreign embassies (consulates) in China. , the balance after the certification fee is sales. For visa fees and certification fees collected from the service recipient and paid on their behalf, special VAT invoices shall not be issued, but ordinary VAT invoices may be issued.

8. When a taxpayer acts as an agent to import goods that are exempt from import value-added tax according to regulations, the sales volume does not include the payment collected from the entrusting party and paid on his behalf. For the money collected from the entrusting party and paid on its behalf, special VAT invoices shall not be issued, but ordinary VAT invoices may be issued.

9. If a taxpayer provides travel services and delivers the original transportation invoices such as train tickets and air tickets to the purchaser of the travel services and cannot recover them, a copy of the transportation invoice will be used as a voucher for deduction of the difference.

10. Comprehensively launch a pilot program for small-scale taxpayers in the accommodation industry to issue special value-added tax invoices on their own. Small-scale taxpayers in the accommodation industry with monthly sales of more than 30,000 yuan (or quarterly sales of more than 90,000 yuan) provide accommodation services, sell goods, or engage in other taxable activities and need to issue special VAT invoices. They can use VAT invoices The new management system will be issued by itself, and the competent state tax authorities will no longer issue it for them.

If a small-scale taxpayer in the accommodation industry needs to issue a special value-added tax invoice when selling real estate acquired by him, he must still apply to the local tax authority for issuance.

Small-scale taxpayers in the accommodation industry who issue special value-added tax invoices on their own shall declare and pay tax to the competent tax authorities within the prescribed tax declaration period.

When filling in the VAT return, the sales volume of the special invoices issued in the current period should be filled in the second column and column of the "VAT return" (applicable to small-scale taxpayers) according to the collection rate of 3% and 5% respectively. In the corresponding column of "Number of this period" in column 5 of "Special VAT invoices issued by the tax authorities, excluding tax sales".

11. This announcement shall come into effect from the date of issuance. Unsolved matters that have occurred previously shall be implemented in accordance with the provisions of this announcement. The "Announcement of the State Administration of Taxation on Matters Concerning the Pilot Program of Self-Issuance of Special VAT Invoices for Small-scale VAT Taxpayers in Certain Regions in the Accommodation Industry" (State Administration of Taxation Announcement No. 44 of 2016) is repealed at the same time.

This is an announcement.

State Administration of Taxation

November 4, 2016