The waste residue produced by our company needs to be taken away by the brick factory for treatment, and it needs to be paid to the brick factory for treatment according to the tonnage. In what name can the brick factory invoice us?

A: The enterprise pays the brick factory the treatment fee to buy the garbage treatment service of the brick factory. According to "Announcement of State Taxation Administration of The People's Republic of China on Defining Some Issues of Value-added Tax Collection and Management of Second-hand Car Distribution" (State Taxation Administration of The People's Republic of China Announcement No.9), under the condition that the ownership of the waste residue will be transferred to the brick factory, the brick factory needs to issue VAT invoices according to the category of "professional technical services" in "modern services".

Original text of the regulation: Announcement of State Taxation Administration of The People's Republic of China on Defining Some Issues of VAT Collection and Management, such as Second-hand Car Distribution (State Taxation Administration of The People's Republic of China Announcement No.9).

2. Taxpayers are entrusted with the specialized treatment of wastes such as garbage, sludge, sewage and waste gas, that is, the waste is reduced, recycled and treated harmlessly by means of landfill, incineration, purification and fertilizer making, and the VAT rate is applicable in accordance with the following provisions:

(1) If no goods are produced after specialized treatment such as landfill and incineration, the trustee belongs to "professional technical service" in "Notes on Sales Services, Intangible Assets and Real Estate" (Cai Shui [2016] No.36 document issued), and the treatment fee charged by it is subject to the VAT rate of 6%.

(2) Where goods are produced after specialized treatment and the goods belong to the entrusting party, the entrusted party provides "processing services", and the processing fee charged by it is subject to the VAT rate of 13%.

(3) Where goods are produced after specialized treatment and the goods belong to the trustee, the trustee provides "professional technical services", and the processing fee charged by it is subject to the VAT rate of 6%. When the Consignee uses the generated goods for sale, the VAT rate of the goods shall apply.