According to the "State Administration of Taxation on the issuance of" the provisions of the value-added tax on a number of specific issues "notice" (State Taxation Fa [1993] No. 154), Article 2 (2), according to the "People's Republic of China *** and the State of the Provisional Regulations on Value-added Tax", Article 1, the Chinese people's *** and the State of the territory of the provision of processing, repairing, repairing and fitting services of the units and individuals for the value-added tax taxpayer, shall pay the VAT. In other words, there are only two kinds of taxable services for VAT: processing and repair and fitting. The Rules for the Implementation of the Provisional Regulations on Value-added Tax of the People's Republic of China further stipulate that the so-called processing refers to the commissioned processing of goods, i.e., the commissioning party provides raw materials and main materials, and the commissioned party manufactures the goods in accordance with the requirements of the commissioning party and receives the processing fee. The so-called repair repair, is entrusted to the damage and loss of function of the goods to repair, so as to restore their original state and function of the business.
The so-called installation refers to the production equipment, power equipment, lifting equipment, transportation equipment, transmission equipment, medical laboratory equipment and other various equipment assembly, placement of engineering operations, including the equipment connected to the workbench, ladder, railing installation engineering operations and the installation of equipment, insulation, anticorrosion, heat preservation, painting and other engineering operations. Thus, door-to-door installation is a taxable service for business tax.
According to the "People's Republic of China **** and the State Provisional Regulations on Value-added Tax Implementation Rules", Article 7 provides that taxpayers operating non-VAT taxable items, should be separately accounted for the sales of goods or taxable services and non-VAT taxable items of turnover; not separately accounted for by the tax authorities in charge of the approval of the sales of goods or taxable services.