General taxpayers purchasing fixed assets, its VAT input tax, along with the purchase of raw materials or commodities input tax credit.
When filing a tax return, there is a column for input VAT on the purchase of fixed assets, just fill it in.
Related regulations:
? First, the credit of input tax on fixed assets is limited to general taxpayers
The new Regulations stipulate that "Units and individuals who sell goods or provide processing, repair and repair services as well as imported goods within the territory of the People's Republic of China*** and the People's Republic of China are taxpayers of value-added tax (VAT), and they shall pay VAT in accordance with the present Regulations." Therefore, non-VAT taxpayers, i.e. enterprises engaged in the labor services stipulated in the Provisional Regulations on Business Tax, such as transportation, construction, finance and insurance, post and telecommunication, culture, sports and entertainment services enterprises purchasing fixed assets such as equipment, are not allowed to offset their input tax.Secondly, China divides VAT taxpayers into general taxpayers and small-scale taxpayers. Small-scale taxpayers calculate the amount of VAT payable for the current period at a rate of 3%, and only general taxpayers calculate the amount of tax payable for the current period according to the formula of "taxable amount = current output tax amount - current input tax amount". It can be seen that "input tax" is a special concept for general taxpayers, therefore, general taxpayers purchasing fixed assets and their input tax can be deducted under the premise of conforming to the new "Regulations" and the relevant provisions of the state. Small-scale taxpayers purchasing fixed assets and their input tax is not allowed to be deducted under any conditions.
Thirdly, the relationship between VAT payable on imported goods and VAT input tax credit should be correctly understood.
The new Regulations stipulate that units and individuals importing goods are taxpayers of VAT, how to understand it?
The units and individuals here include units and individuals engaged in selling goods, providing processing, repairing and mending, as well as units and individuals engaged in the labor services stipulated in the Provisional Regulations on Business Tax, and as long as these units and individuals have imported the goods through the Customs of the People's Republic of China*** and the State of China, they should pay the VAT according to the rate of 17% or 13%, which is not related to the credit or otherwise of that paid VAT. VAT input tax credit is for general taxpayers, both general taxpayers for the import of equipment and other goods and other goods to the Customs VAT, in line with the "VAT Regulations" and the relevant provisions of the premise, can be offset against the current output tax payable.
Second, the fixed assets that can be offset against input tax in the new Regulations refer only to machines, machinery, transportation tools and other equipment, tools and apparatus related to production and operation.
Cai Shui (1993) No. 38 issued by the People's Republic of China *** and the State Provisional Regulations for the Implementation of Value-added Tax Regulations, Article 19, "Regulations (Note: refers to the old Provisional Regulations for Value-added Tax issued in 1993), referred to in Article 10 of the fixed assets refers to: (a) more than one year of use of the machine, machinery, means of transportation, and other equipment, tools, appliances and equipment related to production and operation; (b) the use of the equipment, tools, appliances and other equipment, tools, appliances and other equipment related to production and operation. equipment, tools and appliances; (ii) items not belonging to the main equipment for production and operation, the unit value of which is more than 2,000 yuan and the service life of which is more than two years".The new regulation allows input tax on purchased fixed assets to be deductible from output tax, but does not change the definition of fixed assets.
Secondly, according to the new Provisional Regulations on Business Tax "Units and individuals within the territory of the People's Republic of China*** and the People's Republic of China that provide the labor services provided for in these regulations, transfer intangible assets or sell real estate are taxpayers of business tax and shall pay business tax in accordance with these regulations". What are intangible assets? What is real estate? State Taxation [1993] No. 149 "State Administration of Taxation on the issuance of" Business Tax Notes (Trial Draft) "Notice" explains that intangible assets are not in physical form, but can bring economic benefits of the assets, including the transfer of land use rights, the transfer of trademarks, the transfer of patents, the transfer of non-patent technology, the transfer of copyrights, the transfer of goodwill. Real estate refers to property that cannot be moved and will cause changes in nature and shape after moving, including buildings or structures and other land attachments. It can be seen that the accounting and tax law on the definition of fixed assets is different, accounting, including machinery and equipment and buildings, but the new value-added tax regulations referred to fixed assets include only machinery and equipment, the sale of buildings belongs to the business tax taxable items. 3, general taxpayers purchased the following fixed assets, the input tax shall not be deductible 1, for non-VAT taxable projects. Non-VAT taxable projects, that is, business tax taxable projects, general taxpayers will purchase fixed assets for business tax projects, the input tax on fixed assets shall not be deductible, for example, a company is a general taxpayer is mainly engaged in the production of apparel, clothing design at the same time, on January 10, 2009, due to the need for the design of the purchase of a machine, the machine's input tax can not be deductible. Since real estate, such as houses and buildings, belongs to the category regulated by the business tax regulations, the input tax on materials and related equipment purchased for houses and buildings is not deductible. CaiShui (1993) 38 issued by the Chinese people *** and the State Provisional Regulations for the Implementation of Value-added Tax Rules, Article 20 provides that: taxpayers new construction, alteration, expansion, repair and renovation of buildings, regardless of how the accounting system is accounted for, are fixed assets in progress. Guo Shui Fa [2005] No. 173 "Circular of the State Administration of Taxation on Further Clarifying the Issues Relating to the Charging of Property Taxes on the Accessory Equipment and Ancillary Facilities of Houses" "In order to maintain and increase the use function of the houses or to make the houses satisfy the design requirements, all the auxiliary equipment and ancillary facilities, such as water supply and drainage, heating, fire-fighting, central air-conditioning and intelligent building equipments, etc., that are carried in the houses cannot be moved arbitrarily, electrical and intelligent building equipment, etc., should be included in the original value of the property and levied property tax, regardless of whether they are separately accounted for and accounted for in the accounting". Document Cai Shui (1993) No. 38 and Document Guo Shui Fa [2005] No. 173 clarify the issue of valuation of property, and also provide guidance for us to understand the non-VAT taxable items.? It needs to be emphasized that: First, when a general taxpayer operates the services under business tax, it should account for them separately, and if it does not account for them separately, it should levy VAT on the services according to Article 6 of the Implementing Rules for Provisional Regulations on Value-added Tax issued by Cai Fa Zi (1993) No. 38. Previously can not be accounted for separately resulting in the imposition of value-added tax, the purchase of goods input tax can be deducted, compared to this provision I understand is the collection of value-added tax business tax services, fixed assets input tax can be deducted, but in the end can be deductible we should pay attention to the state later issued by the explanation; Second, the maintenance of fixed assets and the purchase of materials input tax should be in accordance with the principle of whether the fixed assets input tax deductible, the company is a general taxpayer, mainly for the maintenance of fixed assets. For example, a company is a general taxpayer mainly engaged in the production of clothing, clothing design at the same time, January 10, 2009 due to the design needs to purchase a machine A, January 20, 2009 due to the production of clothing purchased a machine B, March 2009 purchased a number of parts to repair machine A, a number of parts of machine B. The company separately accounted for the clothing design business. The company separately accounted for clothing design business. A company so treated? Since Machine B is used for VAT taxable items, both Machine B and the materials used to repair Machine B are deductible against output tax. On the contrary, since Machine A is used for non-VAT projects, both Machine A and the materials for repairing Machine A are not deductible in output tax. Third, the general taxpayers due to VAT taxable items purchased equipment, the installation of the equipment occurred in the civil engineering, its cement and other building materials products, input tax credit or not, the state does not have a clear regulation, in the operation of the tax authorities should be strengthened with the communication.
2. Fixed assets purchased for VAT-exempt projects. Article 15 of the New Regulations provides that "the following items are exempted from value-added tax: self-produced agricultural products sold by agricultural producers; contraceptive medicines and appliances; antique books; imported instruments and equipment directly used for scientific research, scientific experiments and teaching; imported materials and equipment provided by foreign governments and international organizations for free assistance; and items directly imported by organizations of disabled persons for the exclusive use of disabled persons; Sale of articles used by oneself". An accurate understanding of the provisions of this article will help reduce the risk of tax: First, agricultural producers selling self-produced agricultural products are exempted from value-added tax, exempted from value-added tax, there is no output tax, so that the agricultural producers due to the production of self-produced agricultural products and the purchase of fixed assets of its input tax can not be deducted. The second is that the taxpayer operates contraceptive medicines and appliances and antique books. Since the products are exempted from VAT, the input tax on fixed assets purchased by the taxpayer due to the operation of the products cannot be deducted. Thirdly, the "sale of used goods" refers to the sale of goods other than yachts, motorcycles and automobiles subject to consumption tax, which means that the sale of used goods (including fixed assets) by enterprises does not belong to the scope of tax exemption. Fourth, general taxpayers who also operate VAT-exempt projects should be accounted for separately, and those who are not accounted for separately shall not be exempted from tax, what does it mean? For example, Company A is a general taxpayer, mainly engaged in book printing business, and also engaged in the acquisition of antique books, in 2009 for the expansion of book acquisitions to buy a truck (with legal VAT invoices), the correct tax treatment should be: if Company A will be printing and antique book acquisitions separately accounted for when the antique books are exempted from tax, so that the truck input tax can not be deducted; if you can not account for the separation of the sales of antique books should be based on the 17% VAT. Sales of antique books should be calculated in accordance with the 17% tax rate of output tax, while according to the "Provisional Regulations for the Implementation of Value-added Tax" issued under the document Cai Fa Zi (1993) No. 38, Article XVIII, the truck's input tax can be deducted. 3, for collective welfare or personal consumption of fixed assets purchased. Understanding of this article should be noted: this behavior should be the behavior of the general taxpayer, and the taxpayer will purchase fixed assets for collective welfare. For example, Company A is a general taxpayer, January 10, 2009 for the accommodation of each employee purchased a TV (with legal VAT invoices), the TV's input tax can not be deducted. In practice, how to calculate the collective welfare is difficult to grasp, the key to everyone to figure out the connotation of collective welfare. 4, the purchase of fixed assets incurred abnormal losses. Unusual losses refers to general taxpayers in the production, business process outside the normal loss, including natural disaster losses; due to mismanagement caused by theft of goods, mold and deterioration and other losses; other unusual losses. Offset input tax, in fact, is equal to less VAT, abnormal losses and enterprise production and operation of the country should not pay the bill, therefore, refers to the general taxpayers in the production, operation process of fixed assets purchased abnormal losses, if not offset should be input tax into the "non-operating expenditures", if it has been offset input tax, the input tax should be transferred out. If the input tax has been deducted, the input tax should be transferred out. It should be pointed out that the value of fixed assets is amortized by installment, so whether the input tax is transferred out according to the original amount at the time of purchase or according to the net value is not clear in the new "VAT Regulations", but according to the principle of the accrual system, I estimate that it is transferred out according to the net value and the applicable tax rate, and it is suggested to consult the tax authorities for the details of how to operate. The new VAT regulations are not clear, but according to the principle of accruals I guess it is the net value and applicable tax rate. Recommended: a good book for finance professionals must read "Strategic Budgeting - The Industrial Revolution in Management". The strategic budget - the industrial revolution in the management world is the first book in China to take a straight line, the whole process of the case, systematic management! Is also the first domestic dare to financial personnel commitment to the whole process of systematization of the practical effect of a good book, financial personnel must see! In addition, equipment and other fixed assets depreciation is an important part of the product cost, if the product, finished goods, unusual losses, the current tax law provides that the product consumed materials input tax should be transferred out, the same product consumed machine depreciation should be transferred, but in the end to turn or not turn out, please pay attention to the state whether or not to introduce the relevant provisions. 5, the State Council, the competent financial and tax authorities of the fixed assets belonging to the taxpayer's own consumption goods. This issue, the Ministry of Finance in a reporter's question and answer clearly refers to cars, yachts and so on. But what is the specific scope of the car, yacht? I think the new "Chinese People's *** and State Consumption Tax Provisional Regulations" and related documents on the interpretation of small cars, yachts, should be consistent with the concept of the new "VAT Regulations" referred to.? The scope of this tax item includes all kinds of passenger cars with a maximum of 9 seats including the driver's seat and all kinds of medium and light commercial buses designed and technically characterized for carrying passengers and goods with a seating capacity ranging from 10 to 23 seats including the driver's seat.
Vehicles modified or converted from chassis (frames) of passenger cars with an exhaust capacity of less than 1.5 liters (inclusive) fall within the scope of the passenger car levy. Vehicles converted and restructured from chassis (frames) of passenger cars with an exhaust volume greater than 1.5 liters or from chassis (frames) of medium and light commercial buses belong to the scope of levy on medium and light commercial buses." From the Cai Shui (2006) No. 33 document can be seen, the general taxpayer purchased 23 seats of the following car, its input tax can not be deducted, of which less than 9 seats belong to the passenger car, 10-23 seats belong to the medium-sized commercial vehicles. It should be pointed out that the input tax of the oil consumed by the car and the materials used for maintenance can be deducted, which is not very clear, so please pay attention to the documents issued by the state in the future. Four, VAT taxpayers self-made equipment using the enterprise's products ? The acquisition of equipment is mainly in two ways: outsourcing and self-made. Different uses of self-made equipment will lead to different tax results:One is that self-made equipment is used for non-VAT projects. When the self-produced products of the enterprise are used for making equipment, according to Article 4 of the Implementing Rules of Provisional Regulations on Value-added Tax issued by Cai Fa Zi (1993) No.38 document, "Using self-produced or commissioned-processed goods for non-taxable items ", it is regarded as the sale of goods, and the general taxpayers should include the output tax payable on self-produced products in the cost of self-produced equipments when such behavior occurs. The second is that the self-made equipment used for value-added tax projects, in the production of equipment collocation of the enterprise's self-produced products, it is not regarded as the sale of self-produced products, such as Company A is a general taxpayer, on January 4, 2009 will be valued at 234,000 yuan of self-produced hardware materials, used in the manufacture of the enterprise production of machinery and equipment, if the deemed sale of the batch of materials sales tax is 23.4 ÷ (1 + 17%) × 17% = 34,000 yuan, but this 34,000 yuan of tax can be used as input tax credit for the production of equipment is meaningless. Thirdly, the self-produced products are used for real estate and development of intangible assets, according to the "Provisional Regulations for the Implementation of Value-added Tax" issued by the document of Cai Fa Zi (1993) No. 38, Article 4, "Self-produced or commissioned processing of the goods used for non-taxable projects", as the same as the sale of goods, the general taxpayers to occur this kind of behavior, you should self-produced products should be charged with output tax. General taxpayers with such behavior should include the output tax payable on self-produced products in the cost of assets. V. Deductibility of Transportation CostsThe transportation costs of the purchased fixed assets and the assets have a relevant relationship, so whether the freight costs can be deducted depends on whether the input tax of the transported goods can be deducted or not, if the input tax of the transported goods can not be deducted, the freight costs incurred can not be deducted, and vice versa. According to the new Provisional Regulations on Value-added Tax, the input tax of the freight paid can be deducted according to the amount of transportation expenses stated in the bill of settlement of transportation expenses and the deduction rate of 7%. VI. For general taxpayers purchasing goods or taxable services, the prerequisite for input tax deduction must be that "the VAT deduction vouchers obtained are in compliance with the laws, regulations or the relevant provisions of the competent tax authorities of the State Council". If it does not comply with the relevant provisions, no matter what the circumstances are not deductible.