If you are a general taxpayer of VAT, you should calculate and pay VAT based on sales at a tax rate of 17%. If you are a small-scale taxpayer, you should calculate and pay VAT based on sales at a tax rate of 6%. Tax.

The sales of scrap materials (scrap, scraps) and second-hand goods by enterprises are subject to different tax regulations. Some sales of scrap materials (scrap, scraps) should be calculated and paid value-added tax at a rate of 17%. Some should pay half the value-added tax based on the 4% levy rate for sales of used goods. This involves the issue of how to correctly delineate the boundaries between second-hand goods and scrap materials (scrap, scraps), because the tax law's provisions on the sale of used goods and the sale of scrap materials (scrap, scraps) are two different policies. Therefore, correctly dividing the boundaries between second-hand goods and waste products and correctly calculating value-added tax are the needs of enterprises for tax planning and improving tax compliance.

The tax law distinguishes between second-hand goods and waste materials (scrap, scraps) in the following aspects.

1. Different concepts

The concept of second-hand goods:

Caishuizi [1998] No. 6 stipulates: "Second-hand goods refer to those that enter secondary circulation. Old means of production and old means of living with partial use value”

The concept of waste and old materials:

Finance and Taxation [2001] No. 78 stipulates: “Waste and old materials refer to those used in social production and production. Various types of waste items generated during the consumption process, including various types of waste items after simple processing such as selection and sorting. ”

Through the understanding of the concept, it can be explained:

Waste materials. (Scrap, scraps) refers to waste products that have lost their original use value. This kind of waste is for a certain production link and a certain consumption field. After recycling and processing, they also have certain use value: first, the waste materials (scrap, scraps) retain the use value of the original materials; second, the waste materials (scrap, scraps) lose their use value in a certain application, but their waste On the other hand, materials still have use value; third, waste materials (scrap, scraps) can recover their use value after simple processing, or without processing; fourth, waste materials (scrap, scraps) can be restored after deep processing Its original form and original use value.

Second-hand goods refer to used goods that still retain some of their original use value. In 2005, the China Second-Hand Goods Industry Association announced the second-hand goods quality appraisal standards: "Second-hand goods, second-hand goods, and overstocked goods (with a production date of more than three years) have entered the fields of production, consumption and daily consumption and are in a state of reserve, use or idleness. Items that maintain their original basic use value or all their original use value”

2. Different business units

The waste material recycling business unit and the used goods business unit are two different things. department.

The State Administration of Taxation stipulates the measurement standards for waste material recycling business units: "Notice of the State Administration of Taxation on Strengthening the Collection and Administration of Value-Added Tax on Waste Material Recycling Business Units and Waste Material Manufacturing Enterprises" (State Taxation Development [2004 ]60)

(1) Units engaged in the business of recycling waste materials with the approval of the industrial and commercial administration department.

(2) Have fixed business premises and storage space.

(3) Sound financial accounting and able to provide accurate tax information.

The "Measures for the Administration of Used Goods Circulation (Trial)" stipulates the conditions for second-hand goods business units:

Article 18 After receiving the application report and relevant materials, the commodity circulation department shall , shall respond in writing within 30 days; issue a "Secondhand Goods Business Qualification Certificate" to the approved secondhand goods enterprise, and issue a "Secondhand Goods Market Approval Certificate" to the approved secondhand goods market.

Article 20 The registration of used goods enterprises and their branches shall be in accordance with the provisions of the "Regulations of the People's Republic of China on the Registration and Management of Enterprise Legal Persons" and the "Regulations of the People's Republic of China on the Registration and Management of Companies" handle.

3. Different tax preferential policies

There are three differences in preferential tax policies:

1. Taxes on used goods sold by second-hand goods business units and used goods sold by enterprises The preferential policy has two aspects.

The tax law stipulates that the sales of used goods by second-hand goods business units and the sales of used goods by enterprises are consistent with the following: "The taxpayer's sales of used goods (including the sales of used goods by second-hand goods business units and the taxpayer's sales of used taxable goods)" Fixed assets), regardless of whether they are general VAT taxpayers or small-scale taxpayers, or whether they are approved second-hand goods transfer pilot units, VAT will be levied at a half rate of 4%, and input VAT shall not be deducted. "

In this regard, the tax law stipulates that the sales of used goods by second-hand goods business units and the sales of second-hand goods by enterprises are:

"Taxpayers sell used machines that are subject to consumption tax. If the selling price of motor vehicles, motorcycles and yachts exceeds the original value, the value-added tax will be levied at a half rate of 4%; if the selling price does not exceed the original value, the value-added tax will be exempted.

Business of used motor vehicles. Units selling used motor vehicles, motorcycles, and yachts will be levied half of the value-added tax at a rate of 4%.

”

2. The tax regulations on the sales of waste materials (scrap, scraps) by business units and the sales of waste materials by enterprises are different.

(1) Use of waste materials (scrap, scraps, etc.) The production enterprise of scraps and scraps will calculate the input tax at a rate of 10% when it receives the sales invoice of scraps and scraps.

(2) The scrap and scraps recycling business unit sells the scraps and scraps it acquires ( Scrap and scraps) are exempt from value-added tax

(3) For enterprises selling waste and used materials (scrap and scraps), the enterprise shall issue sales invoices and pay tax at the prescribed tax rate (17%) (small-scale taxation). 6% for manufacturing enterprises and 4% for commercial enterprises) Calculate and pay value-added tax

3. The policies stipulated in the tax law for second-hand goods and waste materials (scrap, scraps) are different

( 1) Manufacturing enterprises that use second-hand materials are not allowed to deduct input tax on old materials; manufacturing enterprises that use used materials calculate the input tax at a rate of 10% based on the sales invoices of used materials (scrap, scraps) received.

< p> (2) The sales of second-hand goods will be levied with half the value-added tax at a rate of 4%; for the sale of waste materials (scrap, scraps), the enterprise will issue a sales invoice and pay the prescribed tax rate (17%) (small-scale taxpayers 6% for manufacturing enterprises and 4% for commercial enterprises) Calculate and pay value-added tax

(3) Products processed and produced using waste materials do not enjoy the policy of exempting waste materials from value-added tax; sales of used goods are subject to 4. % tax rate is halved. Through the above understanding of tax policies, we have clarified the difference between second-hand goods and waste materials (scrap, scraps).

Therefore, companies are selling second-hand goods. When selling used goods and scrap materials (scrap, scraps), tax planning should be carried out in advance. When selling used goods and scrap materials (scrap, scraps), sufficient certification materials should be obtained, and appraisal certificates should be obtained for used goods. The 4% tax rate is halved to pay VAT. When selling waste materials (scrap, scraps), special VAT invoices or ordinary invoices must be issued at the prescribed tax rate (17%) (Small-scale taxpayer production enterprises 6 %, commercial enterprises 4%) calculate and pay VAT.