Whether thermal power enterprises pay taxes on the consumption of self produced electricity

According to the current tax law, the following acts shall be regarded as sales:

Recognition of deemed sales in VAT. The Detailed Rules for the Implementation of the Provisional Regulations on Value-Added Tax stipulate that the following 8 behaviors are deemed to be sales:

delivery of goods to others for sale;

sales of consignment goods;

Taxpayers who have two or more institutions and implement unified accounting transfer goods from one agency to other institutions for sale, except where the relevant institutions are located in the same county (city);

use of self-produced and commissioned goods for non-taxable items;

Providing self-produced, commissioned processing or purchased goods to other units or self-employed persons as investment;

the use of self-produced, commissioned processing or purchased goods for distribution to shareholders or investors;

the use of self-produced or commissioned goods for collective welfare or personal consumption; Give away self-produced, commissioned processing or purchased goods to others free of charge.

Your company should not pay taxes on the consumption of self-produced electricity.

Article 3 of the notice of the Ministry of Finance and the State Administration of Taxation on individual income tax issues related to gifts given by enterprises (CS [2011] No. 50) stipulates that "if the gifts given by enterprises are self-produced products (services), the taxable income of individuals shall be determined according to the market sales of the products (services); If it is an outsourced commodity (service), the taxable income of the individual shall be determined according to the actual purchase of the goods (services**). ”

Therefore, if the self-produced product is given to an individual as a gift, the individual income tax shall be paid according to the market sales.

Summary. Hello, I have seen your question and am sorting out the answer, please wait a while Whether the self-consumption of the power plant is considered the output value.

Hello, I have seen your question and am sorting out the answer, please wait a while Whether the self-consumption of the power plant is considered the output value.

Include! Output value: It is the total amount of social products produced by each material production sector in a certain period of time expressed in money, that is, the total output of the material production sector.

The range of output included in the industrial output value shall be the total output produced by the labor consumption in the current period, that is, the finished products, semi-finished products and work-in-progress produced in the current period.

The electricity used by electric power enterprises for operation and office purposes does not fall within the scope of value-added tax, and there is no need to make an uproar and treat it as a deemed sale, and there is no need to pay value-added tax and enterprise income tax.

The power plant uses its own electricity, which needs to be included in the cost accounting, and the increase in the cost is included in the debit accounting.

The accounting treatment of self-consumption of power plants is: debit: administrative expenses and other accounts, and credit: inventory goods.

Question content: The electricity part produced by the power plant is self-used, and whether the self-consumption part is subject to VAT When calculating the income tax, how is the self-consumption part calculated? When I say self-consumption, I mean the electricity used for the operation of the equipment of the power plant itself, and the electricity used for the lighting of the office building.

Reply to comments: Hello:

According to the "Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-Added Tax" (Order No. 50 of 2008 of the Ministry of Finance and the State Administration of Taxation).

Article 4 The following acts of units or individual industrial and commercial households shall be regarded as the sale of goods:

1) Deliver the goods to other units or individuals for sale;

2) the sale of consignment goods;

3) Taxpayers who have two or more institutions and implement unified accounting transfer goods from one agency to other institutions for sale, except where the relevant institutions are located in the same county (city);

4) The use of self-produced or commissioned processing goods for non-VAT taxable items;

5) Using self-produced or commissioned goods for collective welfare or personal consumption;

6) Providing self-produced, commissioned processing or purchased goods to other units or individual industrial and commercial households as investment;

7) Distributing self-produced, commissioned processing or purchased goods to shareholders or investors;

8) Giving self-produced, commissioned processing or purchased goods to other units or individuals free of charge. ”

According to the Notice on Issues Concerning the Income Tax Treatment of Assets Disposal by Enterprises (Guo Shui Han [2008] No. 828), it is stipulated that:

1. In addition to transferring the assets overseas, the disposal of assets in the following circumstances can be regarded as internal disposal assets because the ownership of the assets has not changed in form and substance, and the tax basis of the relevant assets shall continue to be calculated.

1) the use of assets for the production, manufacture, or processing of another product;

ii) alter the shape, structure or performance of the asset;

3) Change of use of assets (e.g., conversion of self-built commercial housing to self-use or operation);

4) transfer assets between the head office and its branches;

5) a mixture of two or more of the above-mentioned circumstances;

6) Other uses that do not change the ownership of assets. ”

According to the above provisions, the electricity used by electric power enterprises for operation and office purposes does not fall within the scope of the above-mentioned deemed sales, and is not subject to deemed sales, and is not subject to value-added tax and enterprise income tax.

You are welcome to ask questions again.

Q] If the electricity produced by the power plant is used for its own use, is the self-consumption part subject to VAT? How is the self-consumption portion calculated when calculating income tax? When I say self-consumption, I mean the electricity used for the operation of the equipment of the power plant itself, and the electricity used for the lighting of the office building.

Answer] Article 6 (4) of the Administrative Measures for the Collection and Collection of Value-Added Tax on Electric Power Products (Decree No. 10 of the State Administration of Taxation) stipulates that "the day on which power generation and power supply enterprises use power products for non-taxable items, collective welfare, and personal consumption shall be the day on which the electricity is issued. "Therefore, if the electricity produced by the power plant is used for non-taxable items, collective welfare, or personal consumption, it is subject to VAT.

However, according to the Notice of the State Administration of Taxation on the Treatment of Income Tax on the Disposal of Assets Abandoned by Enterprises (Guo Shui Han [2008] No. 828), self-use is an internal sale of assets and is not regarded as sales to recognize income, and no enterprise income tax is paid.