Explain 2 3 why engineering materials are not transferred out of input tax, but raw materials are

Let me tell you first, the principle of value-added tax: if there will be output tax in the future, the input tax can be deducted; If it is not possible to generate output tax in the future, the input tax cannot be deducted. The production line built by the company is real estate:

There will be no output tax in the future, so the input tax on the raw materials purchased during the construction process cannot be deducted and should be transferred out; The input tax on the purchase of engineering materials cannot be deducted, and is directly included in the recorded value of engineering materials.

The loss of raw materials is to be transferred out of the input tax, because it is stipulated that the original input tax should be transferred out if the use is changed, and the deduction is not allowed, and the raw materials are to be used as commodities, if you do not use them to make goods, then the original input tax paid must be transferred out.

As fixed assets, engineering materials are not allowed to be deducted, and enterprise B is the ultimate consumer.

Is the value-added tax paid by general taxpayers for the purchase of construction materials included in the cost of relevant assets: Since January 1, 2009, general VAT taxpayers (hereinafter referred to as taxpayers) have purchased (including accepting donations and in-kind investments, the same below) or self-sufficient.

Is it the input tax of the construction materials that is losing money and transferred out together? Why? : Engineering materials refer to the building materials (such as steel, cement, glass, etc.) used in the construction of fixed assets, and the first turnover parts of enterprises (civil air transportation).

VAT is deductible when purchasing materials, and shipping costs can be deducted at 7%.

Legal analysis: 1. If the fixed assets purchased and constructed are production type equipment and the inventory is used, the input tax can be deducted.

2. The input tax on consumer goods used by taxpayers shall not be deducted. The input tax on motorcycles, automobiles and yachts subject to consumption tax for taxpayers' own use shall not be deducted. However, if it is sold after outsourcing, it is an ordinary car, and the input tax can still be deducted.

3. It must be noted that the construction of houses, buildings and fixed assets used for immovable property shall not be deducted from the input tax.

First, houses and buildings shall not be deducted from input tax, regardless of whether they are related to production and operation.

Second, fixed assets used for immovable property are not allowed to be deducted from input tax. After the transformation, the purchase of goods or services for the construction of fixed assets such as machinery and equipment is allowed to be deducted, and only the construction of real estate is not allowed to be deducted.

Immovable property refers to property that cannot be moved or will cause a change in nature and shape after moving, including buildings, structures and other land attachments. Taxpayers' new construction, reconstruction, expansion, repair and decoration of immovable property are all immovable property projects under construction and cannot be deducted from input tax.

Legal basis: Interim Measures for the Installment Deduction of Real Estate Input Tax

Article 2 For the immovable property acquired by the general VAT taxpayer (hereinafter referred to as the taxpayer) after May 1, 2016 and accounted for according to the fixed assets in the accounting system, as well as the immovable property under construction that occurred after May 1, 2016, the input tax shall be deducted from the output tax in two years in accordance with the relevant provisions of these Measures, with the deduction ratio of 60% in the first year and 40% in the second year.

Immovable property acquired includes immovable property acquired in various forms such as direct purchase, acceptance of donations, acceptance of investment in shares, and repayment of debts.

Taxpayers' new construction, reconstruction, expansion, repair and decoration of immovable property belong to immovable property construction in progress.

The above-mentioned provisions on the deduction of 2 years are not applicable to the input tax of real estate projects developed by real estate development enterprises themselves, immovable properties leased by financing, and temporary buildings and structures built on construction sites.

Article 3 Where a taxpayer purchases goods, design services and construction services after May 1, 2016 for the purpose of building new immovable property, or for reconstructing, expanding, repairing or decorating immovable property and increasing the original value of immovable property by more than 50%, the input tax shall be deducted from the output tax in two years in accordance with the relevant provisions of these Measures.

The original value of immovable property refers to the original purchase price or price of immovable property at the time of acquisition.

The above-mentioned purchased goods deducted from the output tax in two years refer to the materials and equipment that constitute the real estate entity, including building decoration materials and water supply and drainage, heating, sanitation, ventilation, lighting, communications, gas, fire protection, air conditioning, elevators, electrical, intelligent building equipment and supporting facilities.

Article 10 of the Provisional Regulations of the People's Republic of China on Value-Added Tax stipulates that the input VAT of the following items shall not be deducted from the output VAT:

1) Purchase of fixed assets;

2) Purchased goods or taxable services for non-taxable items;

3) Purchased goods or taxable services for tax-exempt items;

4) Purchased goods or taxable services for collective welfare or personal consumption;

5) Purchased goods with abnormal losses;

6) Purchased goods or taxable services consumed in products or finished products for abnormal losses.

Article 20 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-Added Tax stipulates that the term "non-taxable items" as mentioned in Article 10 of the Regulations refers to the provision of non-taxable services, the transfer of intangible assets, the sale of immovable property and the construction of fixed assets. Therefore, if the taxpayer purchases materials for fixed assets under construction, the input invoices obtained are not deductible, and if they have been deducted, they must be transferred out of the input.

If it can be deducted, if it is only used for real estate construction projects, 40% of it needs to be transferred out and included in the input tax to be deducted.

There is no need to transfer input tax out.

According to the Notice on Comprehensively Promoting the Pilot Program of Replacing Business Tax with Value-Added Tax (VAT) No. 36 of 2016, from May 1, 2016, units and individuals that sell services, intangible assets or immovable property within the territory of the People's Republic of China are VAT taxpayers and shall pay VAT in accordance with these Measures and not pay business tax.

The purchase and construction of immovable property (including construction in progress) to obtain a special VAT invoice is deductible for its VAT input tax.

The input tax of the raw materials used in the project can also be deducted, which is not included in the cost of the project and does not need to be transferred out.

Summary. Hello dear and honored to answer your <>

According to your question [the remaining engineering materials (including tax) are converted into inventory, and the VAT input tax included in the conversion to inventory can be deducted], the following is the result of my analysis for you from a legal point of view: <>

The remaining engineering materials (including tax) are converted into inventory, and the VAT input tax included in the conversion to inventory can be deducted at a VAT rate of 17% Engineering materials = raw materials + VAT VAT = raw materials * 17% Therefore, engineering materials = raw materials * raw materials = engineering materials.

The remaining engineering materials (including tax) are converted into inventory, and the VAT input tax included in the conversion to inventory can be deducted.

Hello dear and honored to answer your <>

According to your question [the remaining engineering materials (tax included) are converted into inventory, and the VAT input tax included in the conversion to inventory can be deducted], the following is the result of my analysis for you from a legal point of view: [Happy Excavation and Reform] <>

The remaining engineering materials (including tax) are converted into inventory, and the VAT input tax included in the conversion to inventory can be deducted at a VAT rate of 17% Engineering materials = raw materials + value-added judgment VAT = raw materials * 17% Therefore, engineering materials = raw materials * raw materials = engineering materials.

The VAT deduction is a certified deduction. VAT input tax that has not been certified for a wide burial year is not deductible. The reason is that the materials used in the construction project were used for the construction project when they were originally purchased, so the input tax of the materials is not deductible, so there is no certification, so the construction period of the project under construction is quite long, and when the remaining materials of the project are reached, the project will be over, so the value-added tax related to the materials at this time has long passed the certification period, and can no longer be certified, and the quantity is not in line with the original purchase of liquid, so it can not be deducted.

If it is a construction in progress for immovable property, only 40% needs to be transferred out after the VAT reform, because the input tax will be deducted for the immovable property under construction in two years, and another 40% will be deducted in the 13th month, and if it is other construction in progress, it does not need to be transferred out as input.

Regarding the issue of the need to transfer out the input tax generated by the raw materials generated by the raw materials used in the construction of construction projects for production purposes, before the VAT reform of the construction industry and real estate industry on May 1, 2016, the input tax on the raw materials used for the construction of movable assets such as machinery and equipment can be deducted and does not need to be transferred out, and the input tax used for the construction of real estate such as houses is a non-value-added tax taxable item, and the input tax on raw materials cannot be deducted, so the input tax should be transferred out and transferred to the cost of the relevant construction projects under construction. After replacing business tax with value-added tax, the input can be deducted, and the input tax will no longer be transferred out. It is necessary to find out whether the time in the question is before or after May 1, 2016

Prior to the VAT reform, the Provisional Regulations on VAT and its implementation rules stipulated that if an enterprise was building a factory or warehouse and was a non-VAT taxable item for immovable property under construction, the input VAT shall not be deducted from the output VAT in accordance with Article 10 of the VAT Regulations. The value-added tax paid by the enterprise for the purchase of engineering materials for the construction of the warehouse shall be included in the "construction in progress" account.

1. Engineering materials can be materials for the installation of equipment, or materials for the construction of houses. Engineering materials used for immovable property cannot be certified and deducted, so the price and tax are totaled into the engineering materials.

2. The engineering materials used for production equipment can be certified and deducted, so the price and tax are separated into the account. However, the materials that are allowed to be deducted from the certification of input invoices will not be included in the construction in progress, and the project materials at this time are not tax-included.

Circumstances that are not allowed to be deducted from output tax:

1. Purchased goods, services, services, intangible assets and immovable property for taxable items under the simplified tax calculation method, value-added tax exemption items, collective welfare or personal consumption;

2. Abnormal loss of purchased goods, as well as related labor and transportation services;

3. Purchased goods (excluding fixed assets), labor services and transportation services consumed in products and finished products with abnormal losses;

4. Other items specified in ***.

1. For example, when you buy materials or machinery and equipment for the workshop.

Borrow: Raw Materials, Fixed Assets - Machinery and Equipment.

Debit: Tax Payable - VAT Payable (Input Tax).

Credit: Bank deposits or accounts payable.

2. Tax payable - VAT payable (output tax), which is a credit account;

For example: when selling a product.

Debit: Accounts receivable or bank deposits.

Credit: main business income.

Credit: Tax Payable - VAT Payable (Output Tax).

The tax incurred is that taxable services are included in the VAT payable (input tax), and the rest is included in fixed assets.

In accordance with the provisions of the Provisional Regulations on Value-Added Tax and its implementation rules, the construction of factories and warehouses by enterprises is a non-value-added tax taxable item if it is a real estate project under construction. According to Article 10 of the VAT Regulations, the input VAT shall not be deducted from the output VAT.

The amount of value-added tax paid by the enterprise for the purchase of construction materials for the construction of warehouses shall be included in the "construction in progress" account together with the price of materials;

1. For example, when purchasing materials or machinery and equipment for workshops.

Borrow: Raw Materials, Fixed Assets - Machinery and Equipment.

Debit: Tax Payable - VAT Payable (Input Tax).

Credit: Bank deposits or accounts payable.

2. Tax payable - VAT payable (output tax), which is a credit account;

For example: when selling a product.

Debit: Accounts receivable or bank deposits.

Credit: main business income.

Credit: Tax Payable - VAT Payable (Output Tax).

The transfer of input tax is to deal with the non-deductible tax amount in accordance with the provisions of the tax law.

According to the provisions of the current tax law, general VAT taxpayers shall transfer the input VAT when the following circumstances occur: the purchase of goods or taxable services for which the input VAT has been deducted is repurposed; Purchased goods with abnormal losses; Purchased goods or taxable services consumed in products or finished products due to abnormal losses; VAT recoveries due to withdrawal or discounting of purchases; Various forms of return of funds obtained from the seller as a result of the purchase of goods. Some of the input VAT transfers can be directly calculated and determined according to the corresponding deduction rate, while others need to be calculated and determined by some specific methods according to the specific situation.

Non-taxable items, collective benefits, individual distribution, losses caused by theft due to mismanagement, human-caused fires, etc., need to be transferred out of input tax.

Ask the old accountant of your unit, don't be embarrassed, the situation of each unit is different. Sometimes it is transferred at the time of tax payment (credit: tax payable on bank deposits), and sometimes it is transferred at the end of the period.

Purchased materials are used for: non-taxable items, collective welfare, individual distribution, losses caused by theft due to mismanagement, human-caused fires, etc., etc., which need to be transferred out of input tax. In other cases, it shall be deemed to be a sale.

In addition, for the items that are transferred out of input tax, the input tax deducted by the corresponding freight should also be transferred out.

Not only does the input tax on the raw materials used in the construction of the building need to be transferred out, but the immovable property should be subject to business tax when it is disposed of in the future, which belongs to the scope of business tax "sale of immovable property", which belongs to the change of taxable tax. In the same way, the raw materials used by self-developed intangible assets that meet the conditions for capitalization in the development stage must also be transferred out of input tax, because the disposal of intangible assets is the "transfer of intangible assets" within the scope of business tax. On the other hand, movable assets (current assets) such as raw materials and construction equipment do not need to be transferred out of input tax.