Why do enterprises have to pay taxes when they pay electricity bills?

VAT is required to pay electricity bills.

Value-added tax is an off-price tax, and general taxpayers pay electricity bills, and power supply companies need to issue special VAT invoices in accordance with the law.

The amount excluding tax, tax rate, and tax amount will be clearly marked on the special VAT invoice, and the total below is the total amount of price and tax.

The payment of electricity bills can be regarded as the purchase of raw materials, and VAT needs to be paid.

The following is the legal basis:

1. According to Article 1 of the Provisional Regulations of the People's Republic of China on Value-Added Tax (Order No. 538 of the People's Republic of China): Units and individuals that sell goods or provide processing, repair and repair services and import goods within the territory of the People's Republic of China are VAT taxpayers and shall pay VAT in accordance with these Regulations.

2. According to Article 2 of 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 the Ministry of Finance of the People's Republic of China and the State Administration of Taxation), the goods mentioned in Article 1 of the Regulations refer to tangible movable property, including electricity, heat and gas.

I haven't heard that enterprises have to pay taxes for electricity, and enterprises are the payment units. The electricity fee received by the power company is the increase in income, and it should be the power company that pays the tax.

The tax department shall verify and pay the tax amount of the enterprise according to the electricity consumption of the enterprise. It is not that enterprises have to file taxes when they pay electricity bills.

The tax is paid by the person who pays the electricity bill, and the tax has been included in the tax when you pay the electricity bill. That is to say, after you get the utility bill, after paying according to the amount on the bill, it is actually already included in paying taxes.

When a taxpayer sells goods or taxable services, the VAT amount is calculated and charged to the buyer according to the sales amount and the prescribed tax rate. The electricity customer is the final consumer of the electricity conversion and demolition power products, and is also the ultimate bearer of the tax, so you have included tax deduction when you pay the electricity bill. Units and individuals that sell goods or provide processing, repair and repair services, as well as goods entering the country, are VAT payers and shall pay VAT.

Why do I have to pay taxes on household electricity?

Because hello, as long as you consume, you are paying taxes, because the invoice does not list the amount of tax paid, which virtually makes taxpayers feel that they are not paying taxes. Needless to say, it's all too clear. If you think about it, you can see it.

If you don't have to pay taxes on household electricity, you can go directly to the local electricity bureau to pay the electricity bill or pay online.

I've never seen such propaganda! 16%.The electricity system has already paid taxes. China has always paid taxes for businesses, and there is no need to pay taxes for personal consumption. Is this tax rate levied by you?

According to Article 5 of the Provisional Regulations of the People's Republic of China on Value-Added Tax, a taxpayer shall calculate and levy the tax on the value of the increase in reputation to the purchaser according to the sales amount and the prescribed tax rate. Electricity customers are the final consumers of electricity products and the ultimate bearers of taxes. Therefore, the state stipulates that regardless of whether you issue an invoice or not, the power supply company will sell you electricity at the tax-included electricity price.

According to the Notice of the Ministry of Finance on Adjusting the VAT Rate (Cai Shui [2018] No. 32), from May 1, 2018, taxpayers will engage in VAT taxable sales. If the original tax rate of 17% was applied, the tax rate will be adjusted to 16%. Correspondingly, power companies charge 16% VAT to electricity customers when selling electricity products.

According to Article 5 of the Provisional Regulations of the People's Republic of China on Value-Added Tax, when a taxpayer sells goods or taxable services, it shall calculate and collect the VAT amount from the purchaser according to the amount of the sales date and the prescribed tax rate. Accordingly, when electric power enterprises sell electricity products, they will collect VAT from electricity customers, and the tax rate will be adjusted to 13% from April 1, 2019.

We hope you find ours helpful.

If necessary, according to Article 5 of the Provisional Regulations of the People's Republic of China on Value-Added Tax, when a taxpayer sells goods or taxable services, it shall calculate and collect the VAT amount from the purchaser according to the sales amount and the prescribed tax rate. The electricity customer is the final consumer of the electricity product and the ultimate bearer of the tax, so the tax deduction is included when you pay the electricity bill.

The Provisional Regulations of the People's Republic of China on Value-Added Tax (VAT) is a temporary regulation issued for the purpose of levying VAT. The subject of the levy is "units and individuals that sell goods or provide processing, repair and repair services and import goods within the territory of the People's Republic of China, and are VAT taxpayers". The new VAT Regulations and Rules have been amended and will come into effect on 1 January 2009.

On October 30, 2017, the 191st executive meeting passed the decision to amend the Provisional Regulations of the People's Republic of China on Value-Added Tax. On November 19, the People's Republic of China promulgated Order No. 691.

It has always been necessary for the state to collect electricity bills and to pay taxes, and it has been, is, and will be taxed.

The Provisional Regulations on Value-Added Tax stipulate that when a taxpayer sells goods or taxable services, the banquet shall be calculated according to the sales amount and the prescribed tax rate, and the VAT amount shall be charged to the purchaser. Electricity customers are the final consumers of electricity products and the ultimate bearers of taxes.