According to the provisions of the pilot transition policy of changing business tax to value-added tax, the land owner transfers the land use right and the land user returns the land use right to the land owner, and the value-added tax is exempted. However, the State Administration of Taxation did not specify whether the demolition of buildings should be taxed.

According to Article 1 of the Provisional Regulations on Value-added Tax, units and individuals selling goods or processing, repair and replacement services, services, intangible assets, real estate and imported goods in China are taxpayers of value-added tax. Obtaining compensation for demolition does not belong to the scope of collection stipulated in the above provisional regulations on value-added tax. Therefore, we believe that the compensation for building demolition should also belong to the value-added tax exemption project. Lawyer consultation