How to solve the problem of using the difference in construction projects to pay business tax after

1. You are a subcontractor and pay the business tax in full. The general contractor shall pay the business tax on the difference.

2. There are specific requirements, and the amount and project of the contract should be clearly written.

3. The general contractor pays the tax on the difference, and you pay the tax in full, which itself does not double the tax.

In response to this phenomenon, the Ministry of Finance and the State Administration of Taxation have further clarified the term "subcontracting" and linked it with relevant laws, regulations and rules, so that illegal subcontracting payments cannot be deducted from the full price and off-price expenses.

Specifically, please refer to the relevant provisions of the Notice of the Ministry of Finance and the State Administration of Taxation on the Exemption of VAT Policies for the Circulation of Some Fresh Meat and Egg Products (CS 2012 No. 75), that is, taxpayers deduct the subcontract payment from all the prices and off-price expenses obtained, and among the legal and valid vouchers that should be obtained, ordinary VAT invoices refer to ordinary VAT invoices issued by small-scale taxpayers themselves or entrusted to tax authorities to calculate and pay VAT according to the 3% levy rate according to the simplified method.

The ordinary VAT invoice issued by the subcontractor after enjoying the tax exemption policy shall not be used as a voucher for deducting the subcontract payment.

1. If the simplified tax calculation method is applied to the construction services provided by the pilot taxpayers, the balance of the total price obtained and the off-price expenses after deducting the subcontract payment paid shall be the sales amount; If the construction services provided by the pilot taxpayers are applicable to the general tax calculation method, the sales amount shall be the total price and off-price expenses obtained.

2.If the general tax calculation method is selected, Party A obtains the special VAT invoice issued by Party B to be deducted; If the enterprise chooses the simple tax calculation method, the input of the special VAT invoice cannot be deducted.

After the comprehensive VAT reform, how should the general contractor of the VAT difference taxation of construction enterprises carry out accounting?

Classification and conditions for the collection of VAT on the difference in construction enterprises.

According to the provisions of Document No. 17 of the Announcement of the State Administration of Taxation in 2016, the difference levy of value-added tax on construction enterprises is divided into two categories: (1) the first type is the prepayment of value-added tax on the difference in the place where the project is constructed;

2) The second type is the difference in the company's registered place to declare value-added tax.

Conditions for the differential VAT levied on construction enterprises.

According to the provisions of Announcement No. 17 of the State Administration of Taxation in 2016 and Announcement No. 53 of the State Administration of Taxation in 2016, the following conditions must be met at the same time for the difference in value-added tax levied by construction enterprises:

1) The general contractor of the construction enterprise must have subcontracting behaviors, including professional subcontracting, subcontracting of cleaning workers and labor subcontracting.

2) If the VAT is prepaid in the place where the project is constructed, the construction enterprise must provide construction services across counties (cities and districts). If the place of registration of the construction enterprise and the place where the construction services take place are the same IRS jurisdiction, the VAT will not be paid in advance at the place where the construction services are occurring.

3) If a construction enterprise provides construction services across counties (cities and districts) or the place where the construction enterprise is registered and the place where the construction services occur is under the jurisdiction of the same State Taxation Bureau, the general contractor who calculates taxes under the simplified tax calculation method shall declare zero VAT on the difference in the company's registered place as long as the subcontracting business occurs.

4) When the subcontractor issues a VAT invoice to the general contractor, the name of the county (city, district) and project where the construction service takes place must be indicated in the "remarks column" on the VAT invoice.

OK. 1. The announcement of the State Administration of Taxation on the collection and administration of value-added tax such as input tax deduction for domestic passenger transport services (Announcement No. 31 of 2019 of the State Administration of Taxation) stipulates: "7. Deduction of the difference in construction service subcontracting.

For the provision of construction services, the subcontract money that the taxpayer is allowed to deduct from the total price and off-price expenses obtained by the taxpayer in accordance with the regulations refers to the total price and off-price expenses paid to the subcontractor. ”

2. The State Administration of Taxation (Policy Interpretation): "7. With regard to the deduction of the difference in the subcontract payment of construction services for the provision of specific construction services by taxpayers, the balance of the total price obtained and the off-price expenses after deducting the subcontract payment paid can be used as the sales amount in accordance with the current policy provisions. The subcontract payment paid by the general contractor is the concept of packaging expenses, that is, it includes both the price of goods and the price of construction services.

Therefore, the Announcement clarifies that the subcontract money that taxpayers are allowed to deduct from the total price and off-price expenses obtained in accordance with the regulations for the provision of construction services refers to the total price and off-price expenses paid to the subcontractor. ”

If a construction company subcontracts construction services with contracted labor and materials, it can be taxed on the difference.

Article 5 of the Provisional Regulations on Business Tax stipulates that the turnover of a taxpayer shall be all the prices and off-price expenses charged by the taxpayer for tax-paying services, transfer of intangible assets or sale of immovable imitation rubber products. However, the following circumstances shall be excluded: (3) If the taxpayer subcontracts the construction project to other units, the balance of all the prices and off-price expenses obtained by the taxpayer after deducting the subcontract money paid to other units shall be the turnover.

This clause clearly stipulates that if the construction project is subcontracted by the general contractor, the general contractor can pay the construction business tax with the difference as the turnover after deducting the subcontract payment.

In addition, for the invoicing problem, assuming that the general contractor project payment is 2 million yuan, of which the subcontract is 500,000 yuan, the search processing mode should be: the general contractor issues an invoice of 2 million yuan to the construction unit for project settlement, and the subcontractor issues an invoice of 500,000 yuan to the general contractor for subcontracting project settlement, and then the general contractor deducts the turnover with the invoice amount of the subcontractor and declares taxes.