Installation and commissioning fees tax rate of 13 or 9

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, massage chairs, should be repaired and repaired to pay value-added tax, the tax rate of 13%.

Installation service tax rate

According to the "State Administration of Taxation on the clarification of Chinese-foreign cooperative education and other VAT levy and management issues" (State Administration of Taxation Announcement No. 42 of 2018), Article 6 provides that general taxpayers selling self-produced machinery and equipment at the same time as the provision of installation services should be separately accounted for the sales of machinery and equipment and installation services, installation services can be in accordance with the A-supply project to choose to apply the simplified tax method. Simplified tax method.

If enterprise A self-produced machinery and equipment can only run after installation and commissioning, commissioning occurs before the normal operation of the equipment, the commissioning 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% simple 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, there is no installation of the scope of taxation of the installation of services, it is not the scope of Notice 42 of the simplified.

In short:

First, the installation service corresponds to engineering operations

General taxpayers selling self-produced machinery and equipment while providing installation services, should be accounted for 13% of machinery and equipment and 9% of the sales of installation services, installation services in accordance with the A-supply project to choose to apply the simplified tax method of taxation, the tax rate of 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.