According to Article 3 of the notice of the State Administration of Taxation on Issuing the Interim Measures for the collection and administration of value added tax on construction services provided by taxpayers across counties (cities and districts) (Notice No
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17 of 2016 of the State Administration of Taxation), taxpayers who provide construction services across counties (cities and districts) shall pay taxes to the owners of construction services in accordance with the time of occurrence of tax obligations and tax calculation method specified in the document [2016] No
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36 The tax authorities in charge of the state tax shall pay taxes in advance and report and pay taxes to the local competent state tax authorities
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Under what circumstances can we provide construction services in other places without paying VAT in advance? A look across the region (I) the same prefecture level administrative region: no prepayment is required
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Since May 1, 2017, taxpayers providing construction services across counties (cities, districts) within the same prefecture level administrative region do not need to prepay VAT
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The so-called prefecture level administrative region refers to the administrative region between the provincial administrative region and the county-level administrative region, including prefecture level cities, regions, autonomous prefectures and leagues
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（2） The same city with separate planning: if there may be no need to prepay the taxpayer to provide construction services across counties (cities or districts) within the same municipality directly under the central government or city with separate planning, the tax bureau of the municipality directly under the central government or city with separate planning shall decide whether to prepay the VAT
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If Dalian, Qingdao and Shenzhen make it clear that there is no need to pay in advance
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Second, from January 1, 2019, for small-scale taxpayers who should pay VAT in advance according to the current regulations, if the monthly sales in the place of prepayment does not exceed 100000 yuan (quarterly sales do not exceed 300000 yuan, the same below), there is no need to pay tax in advance in the current period
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For construction taxpayers with multiple projects within the jurisdiction of the same tax authority in charge of prepayment, the total sales of all projects in the current month shall be used to judge whether they exceed 100000 yuan
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Third, the place of registration (1) small scale taxpayers in Hubei Province do not pay in advance in a specific period
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From March 1, 2020 to December 31, 2020, small scale VAT taxpayers in Hubei Province are exempt from VAT for taxable sales income with a 3% rate of collection; for prepaid VAT items with a 3% rate of collection, the prepayment of VAT is suspended
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Note: only small-scale taxpayers registered in Hubei Province are applicable
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For example, a small-scale taxpayer construction enterprise in Wuhan City, Hubei Province, whether its construction project is in Hubei province or outside Hubei Province, is exempt from VAT, and does not need to pay VAT in advance
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The construction enterprises registered in other provinces and cities, who go to Hubei for construction, still pay in advance according to the current regulations
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（2） If the construction contract of Hainan enterprises in the province is less than 5 million, no prepayment will be made
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As of June 1, 2020, if the taxpayers in Hainan Province are engaged in production and business activities temporarily across counties (cities) in the province, and the business project contract is less than 5 million (excluding), they may not fill in the “report form of cross regional tax related matters” to the local tax authorities; they may not handle the report of cross regional tax related management matters in the place of operation In addition, all taxes will be returned to the place where the organization is located for declaration and payment
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However, if the taxpayer really needs to handle cross regional tax related matters due to the requirements of departments other than the tax authorities or other reasons, the tax authorities shall accept them
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Source: construction finance and taxation circle.
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