Time of incidence of VAT obligation
(1) The time of incidence of tax obligation of taxpayers selling goods and providing taxable labor services
1. The time of incidence of tax obligation of taxpayers who sell goods by way of direct collection is the day of receipt of the sales proceeds or obtaining of documents requesting for the sales proceeds, regardless of whether the goods are issued or not. The day of receipt of the sales payment or obtaining the sales receipt.
2. The sale of goods by collection and entrusted to the bank to collect, for the day of issue of goods and complete the collection procedures.
3. Sales of goods on credit and installment sales, for the written contract agreed to the date of receipt of payment, no written contract or written contract does not agree to the date of receipt of payment, for the day the goods issued.
4. Sales of goods by way of advance receipts for the day the goods issued, but the production and sale of large-scale machinery and equipment, ships, aircraft and other goods with a production period of more than 12 months, for the day of receipt of advance receipts or written contract agreed upon the date of receipt of payment.
5. Entrusted other taxpayers to sell goods on behalf of the day of receipt of the sales list of the sales unit or receipt of all or part of the purchase price; did not receive the sales list and the purchase price, for the sale of goods issued on behalf of the day of the full 180 days.
6. Sales of taxable services, for the provision of services at the same time as the receipt of sales or to obtain evidence of sales.
7. Taxpayers have a deemed sale of goods (except for consignment of goods, sales of goods sold on behalf of others), for the day of the transfer of goods.
8. Taxpayers imported goods, the time of occurrence of its tax obligations for the day of customs clearance of imports.
(2) The time of occurrence of tax obligation for the sale of services, intangible assets and real estate
1. The time of occurrence of VAT obligation for the sale of services, intangible assets and real estate is usually the day when the taxable act occurs and the taxpayer receives the sales payment or obtains the sales payment vouchers; if the invoice is issued first, it is the day of issuing the invoice. If the invoice is issued first, it is the day when the invoice is issued.
2. If a taxpayer provides leasing services by way of advance payment, the time of occurrence of its tax obligation shall be the day when the advance payment is received.
3. If a taxpayer engages in the transfer of financial instruments, it is the day when the ownership of the financial instruments is transferred.
4. If a taxpayer engages in the deemed sale of services, intangible assets or real estate, the time of occurrence of its tax obligation shall be the day on which the transfer of services or intangible assets is completed or the day on which the ownership of real estate is changed.
Expanded content:
Example questions on the time of incidence of VAT obligation:
Example 1-Single Choice QuestionAccording to the provisions of the VAT legal system, the following statement on the time of incidence of VAT obligation is incorrect ( ).
A. When a taxpayer sells goods by direct collection, it is the day when the goods are issued
B. When a taxpayer sells taxable labor services, it is the day when the taxpayer receives the sales payment for the provision of the labor services at the same time or obtains the voucher for the sales payment
C. When a taxpayer sells goods by entrusting the bank to collect the payment, it is the day when the goods are issued and the procedures for collecting payment are completed
D. When a taxpayer imports goods for customs declaration
D. When the taxpayer imports goods for customs clearance
D. D. The taxpayer imports the goods on the day of customs clearance
Answer A
Analytical option A: The time of incurring the VAT obligation is the day of receiving the sales payment or obtaining the sales receipt, regardless of whether the goods are issued or not, when the goods are sold by means of direct collection.
Example 2-Single Choice QuestionOn May 8, 2017, Company A signed a contract for the sale and purchase of computers with Company B, and the two sides agreed that the total price was 800,000 yuan.On June 3, Company A issued VAT invoices for the full amount of 800,000 yuan, and on June 10, Company A received 450,000 yuan as the first payment from Company B, and on June 25, Company A received 350,000 yuan as the second payment from Company B. The first payment of 350,000 yuan was received from Company B. On June 25, Company A received the second payment of 350,000 yuan from Company B. According to the provisions of the VAT legal system, the time of occurrence of Company A's VAT obligation is ( ).
A.May 8
B.June 3
C.June 10
D.June 25
Answer B
Analyzing the sale of goods or the provision of taxable labor services, the time of occurrence of its value-added tax obligation is the day when it receives the payment for the goods or obtains the sales receipt, or the day of the invoice. If the invoice is issued first, it is the day when the invoice is issued.
Scope of VAT:
(1) Sale of Goods
Sale of goods refers to the transfer of ownership of goods within China for a fee.
Tip 1Goods, refers to tangible movable property, including electricity, heat and gas.
Tip 2 for payment, means to obtain money, goods or other economic benefits from the buyer.
(2) Provision of Processing, Repair and Repair Services
Provision of processing, repair and repair services, also known as the provision of VAT taxable services.
1. Processing refers to the entrusted processing of goods, i.e., the entrusted party provides raw materials and main materials, and the entrusted party manufactures goods according to the requirements of the entrusted party and receives processing fees.
2. Repair repair, is entrusted to the damage and loss of function of the goods to repair, so that it restores the original state and function of the business.
(3) Imported Goods
As long as the taxable goods are imported through customs clearance, they belong to the scope of value-added tax (VAT), and in addition to enjoying tax exemption, VAT will be paid at the stage of importation.
TipExported goods also fall within the scope of VAT, however, a zero rate is generally applied to exported goods.
(D) Sales of services
Sales of services refers to the provision of transportation services, postal services, telecommunication services, construction services, financial services, modern services, and living services.
1. Transportation services
Transportation services, refers to the use of means of transportation to deliver goods or passengers to their destinations, so that the spatial location of the business activities of the transfer; including land transportation services, waterway transportation services, air transportation services and pipeline transportation services.?
2. Postal services
Postal services, refers to the China Post Group Corporation and its postal enterprises to provide mail delivery, postal remittance and machine communication and other basic postal services business activities. Including universal postal services, special postal services and other postal services.
3. Telecommunications services
(1) basic telecommunications services, refers to the use of fixed-line network, mobile network, satellite, the Internet, the provision of voice call service business activities, as well as leasing or sale of bandwidth, wavelengths and other network elements of the business activities.
(2) value-added telecommunication services, refers to the use of fixed-line network, mobile network, satellite, Internet, cable television networks, to provide SMS and MMS services, electronic data and information transmission and application services, Internet access services and other business activities.
4. Construction Services
Construction services, refers to the construction, repair and decoration of all types of buildings, structures and their appurtenances, the installation of lines, pipelines, equipment, facilities, etc., as well as other business activities of engineering operations. Including:
(1) engineering services, refers to the new construction, reconstruction of various buildings, structures, engineering operations.
(2) Installation services, which refers to engineering operations for the assembly and placement of production equipment, power equipment, lifting equipment, transportation equipment, transmission equipment, medical laboratory equipment, and various other equipment and facilities.
Prompted fixed-line telephone, cable television, 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, according to the installation services to pay value-added tax.
(3) Repair services refer to engineering operations to repair, reinforce, maintain and improve buildings and structures (rather than goods) so as to restore their original use value or extend their use period.
(4) Decoration services means the engineering work of renovating and decorating buildings and structures to make them beautiful or have specific purposes.
(5) 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, stripping and clearing of surface attachments (including rock, soil, sand, etc.) and other engineering operations.
5. Financial services
(1) Loan services
①Income from various kinds of occupying and borrowing funds, including income from interest (capital preservation, remuneration, capital occupancy fee, compensation, etc.) during the period of holding financial commodities including maturity, interest income from credit card overdrafts, interest income from the purchase and resale of financial commodities, interest income from the financing and financing of securities, as well as income from financing and leasing back, charging back, forfeiting, and financing. Interest and income in the nature of interest derived from sale and leaseback, charge-back, penalty interest, bill discounting and sub-lending are subject to VAT in accordance with loan services.
② fixed profits or guaranteed profits received from the investment of money funds, pay value-added tax in accordance with the loan services.
(2) direct charges for financial services
Including the provision of currency exchange, account management, electronic banking, credit cards, letters of credit, financial guarantees, asset management, trust management, fund management, management of financial trading venues (platforms), fund settlement, fund clearing, financial payments and other services.
(3) Insurance services, including life insurance services and property insurance services.
(4) Transfer of Financial Commodities
The transfer of financial commodities refers to the business activities of transferring ownership of foreign exchange, marketable securities, non-goods futures and other financial commodities (including funds, trusts, wealth management products and other types of asset management products and various financial derivatives).
6. Modern Services
(1) research and development and technical services, including research and development services, contract energy management services, engineering survey and exploration services, professional and technical services.
(2) Information technology services, including software services, circuit design and testing services, information system services, business process management services and value-added information system services.
(3) Cultural and creative services, including design services, intellectual property services, advertising services and conference and exhibition services.
(4) Auxiliary logistics services, including aviation services, port terminal services, freight and passenger terminal services, salvage and rescue services, loading and unloading handling services, warehousing services and collection and dispatch services.
(5) Leasing services, including real estate and movable property financial leasing services and real estate and movable property operating lease services.
Hint 1 Financing sale and leaseback is subject to VAT in accordance with financial services.
Hint 2 Leasing of advertising space of immovable property such as buildings and structures or tangible movable property such as airplanes and vehicles to other units or individuals for the purpose of publishing advertisements shall be subject to VAT according to the business leasing service.
Tip 3 Vehicle parking services, road access services (including road tolls, bridge tolls, gate tolls, etc.), etc. are subject to VAT according to real estate business leasing services.
(6) Forensic Consulting Services
①Including certification services, forensic services and consulting services.
② translation services and market research services in accordance with the advisory services to pay value-added tax.
(7) radio and television services, including radio and television programs (works) production services, distribution services and broadcasting (including screening) services.
(8) Business auxiliary services, including business management services, brokerage and agency services, human resources services and security protection services.
(9) Other modern services.
7. Living Services
(1) Cultural and Sports Services;
(2) Education and Medical Services;
(3) Tourism and Entertainment Services;
(4) Catering and Accommodation Services;
(5) Daily Services for the Residents (Including Amenities and Municipal Management, Domestic Affairs, Wedding, Elderly Care, Funeral Care, Care and Nursing, Relief and Assistance, beauty salon, massage, sauna, oxygen bar, foot massage, bathing, washing and dyeing, photography and printing services);
(6) other living services.
(5) Sale of intangible assets
Sale of intangible assets, refers to the transfer of intangible assets ownership or the right to use business activities. Intangible assets are assets that do not have a physical form, but can bring economic benefits, including technology, trademarks, copyrights, goodwill, the right to use natural resources and other equity intangible assets.
Tip 1 Natural resource use rights, including land use rights, sea use rights, prospecting rights, mining rights, water extraction rights and other natural resource use rights.
Tip 2 other equity intangible assets, including infrastructure asset operating rights (for example, highway operating rights), public **** business franchise, quota, operating rights (including franchises, chain operating rights, and other operating rights), distribution rights, distribution rights, agency rights, membership rights, seat rights, virtual props of online games, domain names, name rights, portrait rights, naming rights, and transfer fees.
(F) the sale of real estate
1. The sale of real estate, refers to the transfer of ownership of real estate business activities.
2. The transfer of limited property rights or permanent use rights of a building, the transfer of ownership of a building or structure under construction, and the transfer of the use rights of the land occupied by a building or structure together with the transfer of the building or structure shall be subject to value-added tax in accordance with the sale of immovable property.