Question: our company undertakes the simple tax project and signs the tower crane (construction machinery) leasing contract with a
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the contract stipulates that a shall be equipped with professional operators, and a shall issue the ordinary invoice with the name of “construction service”
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When our company prepays in other places, can the invoice be deducted as a subcontract? Reply: Fujian 12366 tax service center of the State Administration of Taxation reply: Hello, if the simple tax calculation method is applicable to the construction service provided by the taxpayer, the sales amount shall be the balance of the total price and the extra price expenses after deducting the subcontract payment
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According to the situation described by you, your enterprise rents construction equipment and the lessor is equipped with operators, which belongs to the purchase of construction services
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If you obtain a VAT invoice which is issued according to the facts and indicates the county (city, district) where the construction services take place and the name of the project, it can be used as the subcontract payment to be deducted from the total price and extra price expenses
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Document basis: 1
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According to the notice of the Ministry of Finance and the State Administration of Taxation on comprehensively promoting the pilot project of replacing business tax with value-added tax (CS [2016] No
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36), annex 2 “provisions on matters related to the pilot project of replacing business tax with value-added tax”, 7 9
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If the simple tax calculation method is applicable to the construction services provided by the pilot taxpayers, the sales amount shall be the balance of the total price and extra price expenses obtained after deducting the subcontracting payment paid
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” 2、 According to the notice of the Ministry of Finance and the State Administration of Taxation on clarifying the policy of value-added tax on financial real estate development and education auxiliary services (Finance and taxation [2016] 140), “16
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Taxpayers who rent construction equipment to others and equip operators shall pay value-added tax according to” construction services ” 3、 According to Article 6 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 deduct the subcontracting payment from the total price and extra price fees obtained in accordance with the above provisions shall obtain the subcontracting payment in accordance with the law and regulations Legal and valid certificates stipulated by administrative regulations and the State Administration of Taxation, otherwise they shall not be deducted
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The above certificates refer to: （ 1） Construction business tax invoice obtained from the subcontractor before April 30, 2016
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The above-mentioned business tax invoice of construction industry can be used as the deduction voucher of prepaid tax before June 30, 2016
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（ 2） The value-added tax invoice obtained from the subcontractor after May 1, 2016, indicating the county (city, district) where the construction service takes place and the name of the project in the remark column
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（ 3） Other certificates prescribed by the State Administration of taxation
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” Source: State Administration of Taxation 12366.
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