Goods and services tax classification and coding refers to the upgraded version of VAT invoices. Taxpayers issuing invoices for goods on the face of the ticket should be associated with the tax code approved by the General Administration of Taxation, and issue invoices in accordance with the tax rate and levy rate indicated on the classification code. It also enables tax authorities to count, screen, analyze and compare data, etc., with the ultimate goal of strengthening collection management.
Since May 1, 2016, pilot taxpayers and new VAT taxpayers included in the scope of implementation of the new system shall use the new system to select the corresponding codes for issuing VAT invoices.Taxpayers who have used the new system before May 1, 2016 shall complete the upgrading of the invoicing software before August 1, 2016. VAT special invoices, VAT special invoices for the goods transportation industry, VAT general invoices, and uniform invoices for the sale of motor vehicles issued using the upgraded version of the VAT invoice system.
Common errors in code selection
1. The name of the sales item on the invoice belongs to goods and labor services, and the selected commodity code belongs to services; the name of the sales item on the invoice belongs to services, and the selected commodity code belongs to goods and labor services. Such as accommodation fees, consulting fees, etc. Selection of rice, and so on.
2, the ticket sales project is a mechanical machine, the whole car, the selected commodity code is machinery spare parts, auto parts or repair and maintenance services, or vice versa.
3, the ticket items and the selected commodity code are goods and services or services, but the category (1, 2 level) selection is obviously wrong. Such as machinery and automobile maintenance fee selection of goods; sales of machinery selection of cereals, vegetables; the provision of construction services selection of consulting services; medical equipment and pharmaceutical reagents category confusion; technical consulting services, software development and maintenance, such as the selection of patented technology transfer, non-proprietary technology transfer, research and development services; leasing category selection of immovable property, movable property sales of major categories, or vice versa, and so on.
4, the ticket items and the selected commodity code broad category direction selection matches, but the 3, 4 level subtype selection error. Such as repair and maintenance selection of installation services (repair services should be selected); advertising and promotion of printed matter selection of books, newspapers and periodicals type of printed matter; agricultural products and agri-food, agri-food and food category confusion, etc.; engineering, installation, repair, decoration services are confused; loan services and transfer of financial commodities confusion, interbank transactions and customer loans confusion; catering and lodging confusion; residential and commercial premises confusion; research and development and information technology services.
5. Failure to correctly distinguish between raw materials, intermediate products, finished products. For example, the roll of paper to choose pulp, cardboard boxes to choose boxboard, grains and rice, grain products and other confusion.
6, the choice is clearly not in line with the unit's actual production and sales and service capabilities of the commodity code. Such as hydroelectric power stations or collection of electricity units to choose nuclear power generation; agricultural machinery and equipment production and sales units to choose aircraft category.
7, most of the main commodities selected correctly, a small part of the auxiliary materials or auxiliary tools and equipment did not correctly select the appropriate code. Such as some of the medical reagents sales unit prescribed utensils, cleaning fluid with the main commodity selection of test reagents.