1, engineering services
Engineering services, refers to the new construction, reconstruction of a variety of buildings, structures, engineering operations, including a variety of equipment connected to the building or pillars, the installation of operating platforms or installation of engineering operations, as well as a variety of kilns and metal structure engineering operations.
2, installation services
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 workbenches, ladders, railings connected to the installation of engineering operations, as well as the installation of equipment, insulation, anticorrosion, heat preservation, painting and other engineering operations. Operation. Installation fees, initial installation fees, account opening fees, expansion fees and similar fees charged by operators of fixed telephones, cable TV, broadband, water, electricity, gas and heating to users shall be subject to VAT in accordance with the installation services.
3. Repair Services
Repair services refer to the engineering operations of repairing, reinforcing, conserving and improving buildings and structures so as to restore their original value of use or to extend their period of use.
4, decorative services
Decorative services, refers to the buildings, structures, decoration, make it beautiful or have a specific purpose of the engineering work.
5, other construction services
Other construction services, refers to a variety of engineering operations other than those listed above, such as drilling (drilling), demolition of buildings or structures, land leveling, landscaping, dredging (excluding dredging of waterways), building grading, scaffolding, blasting, mine perforation, surface attachments (including rock, soil, sand, etc.) stripping and cleaning and other engineering operations. clearing and other engineering operations.
Difficulties of the construction services industry
1, the uncertainty of the tax location
According to the provisions of the current business tax, the construction services industry taxpayers and withholding agents to provide taxable services in the construction services industry, the place of occurrence of the taxable services is the place of payment of business tax; if engaged in cross-provincial business, the taxpayer should declare the tax to the local tax authorities in charge of the location of the organization. In case of inter-provincial business, the taxpayer should declare the tax to the competent local tax authority in the place of organization. The construction service industry is characterized by great mobility and complexity of projects, so the current regulations facilitate the tax collection and management work.
If the construction service industry is reclassified as VAT, there are two choices in determining the place of tax payment, i.e., the place of organization or the place of project. The choice of the place of taxation is in the place where the taxable services take place, which will put high demands on the financial accounting ability of the construction service enterprises. Currently, most construction projects are carried out by large builders who bid for the project and then set up a project department at the location of the project or subcontract to other temporary construction units to carry out the project operations. As these project departments or temporary construction units do not have strong financial accounting ability, more problems are likely to arise when calculating the payment of VAT. In addition, the construction materials required for the project are usually purchased by the headquarter and then distributed to the locations of the construction projects, which is not conducive to VAT input deduction.
The choice of tax payment location in the place where the organization is located puts higher requirements on the collection and management level of the tax authorities in the place where the organization is located. Because of the construction in a different place, the tax authorities can't exactly grasp the construction progress and actual financial status, which is easy to create loopholes in the tax supervision and bring the possibility of tax evasion.
2, the uncertainty of the tax time
According to the provisions of the current business tax, construction services taxpayer's tax obligation occurs on the date of payment stipulated in the written contract or the taxpayer receives business income or obtains business income on the same day of the receipt of the payment vouchers. In addition, if a taxpayer provides construction services with advance payment, the taxpayer's tax obligation will be incurred on the day the advance payment is received.
Generally, there are two main settlement methods in the construction service industry, one is the use of prepayment, and the remaining balance is paid in a lump sum after the completion of the contract; the other is to pay according to the progress of the project, and liquidation is carried out after the completion of the project, and both of these settlement methods lead to fluctuations in the occurrence of large fluctuations in the collection of taxes. In the early stage of the project, the construction service enterprises only have a large number of VAT inputs and no outputs, resulting in a situation in which the enterprises have no tax to pay; in the late stage of the project, it is just the opposite, the construction service enterprises have a large number of VAT outputs, while the deductible input tax is less, thus resulting in greater fluctuations in tax revenue from the tax authorities.
3. Difficulty in determining the tax rate
In the process of tax reform, the construction service enterprises are most concerned about the determination of the tax rate, because it directly affects the amount of tax payable by the enterprises, and whether it is an increase or a decrease compared with the previous collection of business tax. For the tax authorities, if the tax rate is too low, the tax revenue will be reduced; if the tax rate is too high, the enterprises will have resistance, which is not conducive to the smooth development of the collection and management work. Therefore, it is particularly important to set a reasonable tax rate.