Equipment installation tax rate is how much

A production enterprise (general taxpayer) sales of self-produced machinery and equipment and provide installation and commissioning services, the enterprise believes that the installation of machinery and equipment services tax rate of 9%, commissioning services tax rate of 6%, confused about how to apply the tax rate of "installation and commissioning fees", is it 9% or 6%?

The scope of installation services

According to the Ministry of Finance, State Administration of Taxation on the full promotion of business tax to value-added tax pilot notice (Cai Shui [2016] No. 36) Annex 1 "business tax to value-added tax pilot implementation measures" attached to the "sale of services, intangibles, real estate notes" stipulates that: "Installation services, refers to the production equipment, power equipment, Lifting equipment, transportation equipment, transmission equipment, medical laboratory equipment, as well as a variety of other equipment, facilities, assembly, placement of engineering operations, including the installation of equipment connected to the bench, ladders, rails installed engineering operations, as well as the installation of equipment, insulation, anticorrosion, heat preservation, painting and other engineering operations.

Fixed telephone, cable TV, broadband, water, electricity, gas, heating and other operators to charge the user installation fees, initial installation fees, account opening fees, expansion fees and similar charges, in accordance with the installation services to pay VAT. "

As can be seen from the definition of installation services, installation services refers to equipment, facilities, assembly, placement engineering operations, should be buildings, structures as a basis, not buildings, structures as a basis for the assembly of equipment, should be dealt with by the repair and repair services. For example, the installation and commissioning of refrigerators, washing machines and massage chairs shall be subject to VAT at the rate of 13%.

Installation service tax rate

According to Article 6 of the Announcement of the State Administration of Taxation on Clarifying Some VAT Levy and Management Issues of Chinese-Foreign Cooperative Schooling (Announcement of the State Administration of Taxation No. 42 of 2018), general taxpayers selling self-produced machinery and equipment and providing installation services at the same time should account for the sales amount of the machinery and equipment and the installation services separately. Sales, installation services can be in accordance with the A-supply project to choose to apply the simple tax method of taxation.

If enterprise A self-produced machinery and equipment can only run after installation and commissioning, is in the normal operation of the equipment before the debugging, the debugging is part of the installation services, installation and commissioning should be installed according to the installation services to pay value-added tax, the tax rate of 9%, the tax rate of 3% for the simplified tax.

Practical misunderstanding: that as long as the installation of machinery and equipment services can be simple taxation, do not know, here the machinery and equipment has its own unique scope, should be limited to the installation of equipment for engineering operations, no installation services tax range of support, is not a simple range of Announcement No. 42.

In short:

First, the installation service corresponds to the engineering work

General taxpayers selling self-produced machinery and equipment at the same time to provide installation services, should be accounted for 13% of machinery and equipment and 9% of the sales of the installation services, installation services in accordance with the A-supply project to choose to apply the simplified tax method of taxation, the collection rate is 3%. It should be noted that the installation services should be based on buildings, structures, the basic definition of engineering operations.

Second, the installation services are not separately accounted for

1. self-produced equipment: the production and sale of goods-based taxpayers, applying the 13% tax rate; otherwise, apply the 9% tax rate;

2. purchased equipment: the tax rate from the high, applying the 13% tax rate.