Design, production, and distribution of outdoor advertising is a national tax or a local tax

If it is a propaganda advertisement, business tax should be paid; If it is a physical advertisement such as street signs, billboards, and light signs, according to the Provisional Regulations of the People's Republic of China on Value-Added Tax, the street signs, billboards, light signs, etc. produced belong to the scope of taxable goods of value-added tax, and VAT shall be paid.

Outdoor advertising is engaged in production and release. Pay business tax, which belongs to the service industry. No VAT is paid. However, it is necessary to file a corporate income tax return in the national tax.

Notice of the Ministry of Finance and the State Administration of Taxation on Including Railway Transport and Postal Services in the Pilot Program of Replacing Business Tax with Value-Added Tax (Cai Shui [2013] No. 106): Annex 1: Notes on the Scope of Taxable Services:

Advertising services refer to the business activities of publicizing and providing related services for customers' goods, business service items, cultural and sports programs, notices, statements, and other entrusted matters in various forms such as books, newspapers, magazines, radio, television, movies, slide shows, street signs, posters, shop windows, neon signs, light boxes, and the Internet. Including advertising** and the release, broadcasting, publicity, display, etc. of advertisements** and advertisements.

How to declare and pay taxes on the income obtained from the production of street signs and billboards, it is first necessary to distinguish between the two concepts of advertising industry and advertising art industry. The definition of advertising industry in the Annotations to Business Tax Items is: "the business of publicizing and providing related services in the form of books, newspapers, magazines, radio, television, movies, slide shows, street signs, posters, shop windows, neon signs, light boxes, etc.

The advertising art industry is a business in which producers use their art expertise to process and produce items for customers.

The act of accepting entrustment from other units and individuals to process and produce street signs, billboards, and light boxes in accordance with the advertising design plans provided by them does not belong to the advertising industry, but should be within the scope of the advertising art industry. This is because, in the whole advertising campaign, it is only the producer of street signs, light boxes, billboards and other items, and the advertising planning and release are all done by the client or the advertising agency entrusted by the client. Therefore, according to the Provisional Regulations on VAT, the production of street signs, light boxes, billboards, etc. fall within the taxable scope of VAT.

It depends on what kind of situation your company falls into.

Answer: According to the relevant provisions of the Annotations to Business Tax Items (Trial Draft): "Advertising industry refers to the business of publicizing and providing related services in the form of books, newspapers, magazines, radio, television, movies, lights, street signs, posters, shop windows, neon signs, light boxes, etc., for the introduction of goods, business service items, cultural and sports programs, notices, declarations and other matters.

Therefore, for the outdoor advertising project, the designed advertising installation should be taxed according to the "service industry - advertising industry". The amount of income shall not be deducted from the expenses incurred by advertising companies for processing, production or installation by entrusting other enterprises due to business needs; The income obtained by enterprises that accept the processing, production or installation entrusted by advertising companies shall be taxed according to the prescribed tax types and tax items.