Taxpayers who provide maintenance services for machinery and equipment after installation and operation shall pay value-added tax in accordance with "other modern service industries".
If so, the tax rate is 6% for general taxpayers and 3% for small-scale taxpayers.
From April 1 day in 2022 to February 3 1 day in 2022, small-scale taxpayers can be exempted from VAT (AnnouncementNo. 15, State Taxation Administration of The People's Republic of China, Ministry of Finance, 2022).
According to the Announcement of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Several Issues Concerning the Administration of Value-added Tax Collection in Chinese-foreign Cooperative Education (Announcement No.42 of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC), 20 18).
Where taxpayers provide repair and replacement services, the general taxpayer's VAT rate is 13%, and the small-scale taxpayer's levy rate is 3%. Repair and replacement refers to the business of repairing damaged and disabled goods and restoring them to their original state and function.
From April 1 day, 2022 to February 3 1 day, small-scale taxpayers of value-added tax shall be exempted from value-added tax.
Based on:
Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-added Tax (Order No.50 of State Taxation Administration of The People's Republic of China of the Ministry of Finance of People's Republic of China (PRC)),
Announcement of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Exempting Small-scale Taxpayers from VAT (AnnouncementNo. 15, Ministry of Finance and State Taxation Administration of The People's Republic of China, 2022).
How to make accounting entries for workshop equipment maintenance fees?
Borrow: manufacturing cost-maintenance cost
Loan: raw materials, etc.
When carrying forward manufacturing expenses:
Borrow: production cost-manufacturing cost
Loans: manufacturing costs-maintenance costs, etc.
Manufacturing expenses refer to the indirect expenses incurred by enterprises for producing products and providing services, including utilities, depreciation of fixed assets, amortization of intangible assets, salaries of managers, labor protection fees, environmental protection fees stipulated by the state, seasonal and shutdown losses during repair, etc.
Accounting entries for purchasing equipment
No need to install
Borrow: fixed assets
Taxes payable-VAT payable (input tax)
Loans: bank deposits, etc.
Equipment to be installed
When purchasing the installation product.
Borrow: Construction in progress.
Taxes payable-VAT payable (input tax)
Loans: bank deposits, etc.
Pay installation fees, etc.
Borrow: Construction in progress.
Taxes payable-VAT payable (input tax)
Loans: bank deposits, etc.
When the equipment is installed and delivered for use.
Borrow: fixed assets
Loan: Construction in progress.