The so-called "materials supplied by Party A" construction project refers to the project in which the capital construction unit provides raw materials and the construction unit only provides construction services. Therefore, the "A-supplied materials" construction project of the real estate development enterprise refers to the project in which the real estate development enterprise (hereinafter referred to as Party A) provides raw materials and the construction unit (hereinafter referred to as Party B) only provides construction services. The reason why "Party A provides materials" is that from the perspective of material quality and cost-effectiveness, Party A prevents Party B from making a fuss about materials, fearing that the quality of building materials cannot be guaranteed, which will affect the housing and its own reputation. General materials account for 30% ~ 40% of the construction cost of commercial housing.
For the tax treatment of materials supplied by Party A, the tax law is relatively clear. However, there is no very clear regulation on how to deal with the accounting of the materials supplied by Party A, which brings the problem of invoicing and the consequent tax problems.
Second, the relevant tax policies and regulations of "materials supplied by Party A"
The taxation of materials supplied by Party A is mainly about how to collect business tax. Article 7 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Business Tax (Order No.52 of State Taxation Administration of The People's Republic of China of the Ministry of Finance) stipulates that "the following mixed sales behaviors of taxpayers shall be accounted for separately for the turnover of taxable services and the sales of goods, and the turnover of taxable services shall be subject to business tax, while the sales of goods shall not be subject to business tax; If they are not accounted for separately, the turnover of taxable services shall be verified by the competent tax authorities: (1) the act of selling self-produced goods while providing construction services; (2) Other circumstances stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China. Article 16 stipulates that "except as stipulated in Article 7 of these Detailed Rules, if a taxpayer provides construction services (excluding decoration services), its turnover shall include the price of raw materials, equipment and other materials and power used in the project, but not the price of equipment provided by the construction party. The reason why the tax law stipulates this is mainly to prevent taxpayers from purchasing raw materials in the name of Party A instead of "contracting for work and materials", thus avoiding business tax.
The Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Business Tax (Order No.52 of State Taxation Administration of The People's Republic of China of the Ministry of Finance) does not clearly stipulate whether the materials supplied by Party A in the decoration project should be merged into the turnover to collect business tax. According to the notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on the issue of levying business tax on the decoration services provided by taxpayers in the form of contract clearing workers dated August 17, 2006, Caishui [2006] 1 14: "The decoration services provided by taxpayers in the form of contract clearing workers shall be based on the income such as labor costs, management fees and auxiliary materials fees actually collected from customers (excluding The above-mentioned decoration services provided in the form of clearing workers refer to the decoration services in which the main raw materials and equipment required for the project are purchased by the customers themselves, and the taxpayers only charge the customers for labor costs, management fees and auxiliary materials. Therefore, the materials supplied by Party A in the "construction industry" other than decoration services (including the equipment provided by Party A) need to be incorporated into the taxable turnover of Party B to collect business tax.
Third, the accounting treatment and tax treatment of materials supplied by Party A.
(1) Accounting treatment of materials supplied by Party A
The problems caused by the materials supplied by Party A mainly lie in different accounting treatments, from which the problems of how to invoice and tax the materials supplied by Party A are derived. There are two ways to deal with accounting in reality.
Accounting treatment when the construction unit purchases materials in the market;
Borrow: engineering materials XX million yuan
Loan: bank deposit of XX million yuan.
The construction unit will provide materials to the construction party for the project. When providing materials to the construction party, there are two ways to deal with them in current practice:
1, Option 1:
(1) When the Employer issues the materials:
Debit: advance payment of XX million yuan.
Loan: RMB 10,000.00 Yuan for engineering materials.
(2) When the contractor receives the materials,
Borrow: engineering materials XX million yuan
Loan: advance payment of XX million yuan.
(3) When the contractor uses the engineering materials for the project,
Borrow: project construction-the contract cost is XX million yuan.
Loan: RMB 10,000.00 Yuan for engineering materials.
The basis of this accounting treatment is that, according to the relevant regulations of the state on project cost, in the project, no matter who provides the materials, the total cost of the project should include all the materials. Under the condition that the total cost is confirmed, the construction party pays cash to the construction party as an advance payment. Similarly, the construction party should treat the materials as an advance payment when it gives them to the construction party, but it pays in kind.
2. Method 2:
(1) When the Employer issues the materials:
Borrow: XX million yuan for construction in progress.
Loan: RMB 10,000.00 Yuan for engineering materials.
Because the construction party directly included the project cost when sending out the materials, the construction party will not do any accounting treatment when receiving the materials and using them in the project in the future.
The basis of this accounting treatment is that the owner thinks that the purchased materials are used for the project of the unit, so it is in line with the regulations to directly count them into the construction in progress when issuing materials.
(II) Tax treatment of materials supplied by Party A
The above two different accounting treatment methods bring about different problems in the issuance of invoices for the construction party:
1, invoice issuance and business tax treatment in the following way
Because the construction party issued the materials through prepayment accounting, and did not enter the project cost, therefore, the construction party should issue invoices for the construction industry according to the amount of materials provided by Party A, and pay the business tax in full.
In this way, the construction enterprise issues a construction invoice to the constructor according to the amount of materials supplied by Party A and confirms the income. However, since the materials supplied by Party A are purchased by the constructor and provided to the constructor, the constructor cannot obtain the invoice and enter the cost. It is necessary to obtain the consent of the tax authorities in advance to adopt this accounting method, so as not to increase the burden of enterprise income tax for construction enterprises.
2. Invoice issuance and business tax treatment under Method 2
Because the construction party directly included the project cost when issuing the materials, when the construction party finally issued the construction invoice, it could only make out the invoice according to the amount of materials provided without Party A. If the invoice was made according to the amount of materials provided with Party A, the materials provided by Party A would be repeatedly included in the cost of the construction party. However, according to the relevant provisions of business tax, no matter how to invoice, the materials supplied by Party A should be incorporated into the taxable turnover of the construction party to collect business tax, that is, the construction party must pay business tax according to the amount of materials supplied by Party A, and the duty of negative tax is consistent with the method.
It should be noted that the taxation method of materials provided by Party A in equipment and decoration services is different from the above provisions.
Four, "A-supplied materials" accounting and tax treatment examples
[Case]:
A real estate development enterprise entrusts a construction unit to build a factory building, and the total project cost is12 million yuan, including 2 million yuan for materials supplied by Party A..
(1) Accounting treatment of materials supplied by Party A
1, accounting treatment of materials supplied by Party A by the Owner
(1) When the constructor (Party A) purchases materials from the market:
Borrow: 2 million yuan for engineering materials.
Loan: 2 million yuan in bank deposit.
Here, it is assumed that the construction party (Party A) is not a general taxpayer of value-added tax, but an ordinary invoice, and then the enterprise will provide the 2 million materials to the construction party (Party B) for the project.
(2) When the constructor (Party A) provides the materials to the constructor (Party B):
① Mode 1:
When the Employer issues the materials:
Debit: 2 million yuan in advance.
Loan: 2 million yuan for engineering materials.
The basis of this accounting treatment is that, according to the relevant regulations of the state on project cost, in the project, no matter who provides the materials, the total project cost includes all the materials, and in the accounting of the total project cost, all the materials should be included in the total project cost after tax, that is, the project cost is tax-included. When the total cost is confirmed, we regard the total cost of the project as the project price that the constructor should pay to the constructor. When the construction party pays the cash to the construction party, it should be treated as an advance payment. Similarly, when the construction party gives the materials to the construction party (that is, the materials supplied by Party A), it should also be treated as an advance payment. It's just that one pays in cash and the other pays in kind. In the absence of other errors, the enterprise will eventually pay in cash or in kind.
The sum of prepaid accounts should be12 million yuan.
② Mode 2:
When the Employer issues the materials:
Borrow: 2 million yuan for construction in progress.
Loan: 2 million yuan for engineering materials.
The basis of this accounting treatment is that the construction party believes that the materials I bought for the construction party are used for my project, so it is in line with the regulations to directly count them into my construction in progress when issuing materials.
Judging from the relevant laws and regulations, there is no very clear regulation on how to deal with the accounting of materials supplied by Party A at present. In the accounting treatment of enterprise practice, some construction units adopt the first method of issuing materials supplied by Party A, while others adopt the second method. Therefore, from the accounting point of view, as long as it can provide true and effective accounting information for the third party of accounting information. Both accounting treatment methods are acceptable.
2. Accounting treatment of materials supplied by Party A by the construction party
(1) Accounting treatment in Option 1:
(1) when the contractor receives the materials.
Borrow: 2 million yuan for engineering materials.
Loan: 2 million yuan in advance.
(2) when the contractor uses the engineering materials for the project.
Borrow: project construction-the contract cost is 2 million yuan.
Loan: 2 million yuan for engineering materials.
③ The contractor shall confirm the gross profit of the contract, main business income and main business cost according to the progress of the project:
Borrowing: Project Construction-Contract Gross Profit/Main Business Cost
Loan: income from main business
(2) Accounting treatment of Method 2:
Since the construction party directly included the project cost when sending out the materials, the construction party will not do any accounting treatment when receiving the materials and using them in the project in the future.
(2) The invoice for materials supplied by Party A shall be issued
The above two accounting treatment methods will bring about the next issue of the construction party's construction invoices:
1, method 1 invoice issuance
In this mode, because the construction party accounts for the materials in advance and does not enter the project cost, the construction party should issue invoices for the construction industry according to12 million and pay business tax according to12 million.
2. Invoice issuance in Method 2
In this mode, because the construction party directly included the project cost when issuing the materials, the construction party can only invoice the construction industry according to10,000,000,000 in the end. If invoicing according to12,000,000,000, 2,000,000 materials will be repeatedly entered into the cost by the construction party. However, according to the relevant provisions of business tax, regardless of whether the contractor issues the invoice according to10 million or12 million, the materials supplied by Party A must be incorporated into the taxable turnover of the contractor to collect business tax, that is, the contractor must collect business tax according to12 million yuan, which is the same as the first method.
(3) Tax risk warning
Theoretically speaking, for the construction party, no matter how the construction party handles the accounting, his tax burden is unchanged, but the billing amount is different according to the different accounting treatment of the construction party. However, in reality, because business tax is a turnover tax, the transferability of turnover tax determines the business tax to be paid by the construction party, which is actually passed on to the construction party, at least partially. Therefore, for the construction party, he tends to adopt the second accounting treatment method. Under this accounting treatment method, the construction party directly counts the materials supplied by Party A into the project cost, so that the construction party does not need to invoice. Due to the supervision of the tax authorities, the construction party will generally not take the initiative to declare and pay business tax for this part of the materials supplied by Party A that are not invoiced, and even when the construction party determines the project cost in the project budget, it will not raise taxes on this part of the materials supplied by Party A and incorporate them into the total project cost. From this point of view, the project owner prefers the second accounting treatment. However, under this accounting treatment, the construction party has taken great risks. We know that. Regardless of the accounting treatment of the construction party, the construction party is the taxpayer of the business tax on materials supplied by Party A. If the tax authorities find the problem and ask the construction party to pay back the tax, the construction party will only pay and even bear the risk of being punished for tax evasion. No matter how it is handled with the construction party, it is necessary to pay business tax on the materials supplied by Party A.. As for the problem that the materials supplied by Party A are not taxed, the construction party should negotiate with the construction party itself or seek a solution from the relevant project management department.
(D) Analysis of tax treatment
1, tax treatment analysis of mode 1
In the case of the first method, the construction enterprise will issue the construction invoice to the owner according to12 million, and confirm the income on the books according to 1200 yuan. However, for the 2 million materials supplied by Party A, the invoice must be made out to the owner and entered in the account of the owner, and the construction enterprise cannot obtain the invoice for this part of materials. For this part, how to deduct the enterprise income tax is a big problem for construction enterprises.
In order to solve this problem, there are two ways to deal with it:
(1) The contractor's invoice for materials supplied by Party A shall be included in the cost of the project by both parties at the end of the project, and after the final accounts report comes out, the construction unit shall include it in the cost of the project with the final accounts report and the invoice list of purchased materials provided by the contractor, and it is allowed to deduct it before tax.
(2) Some national tax authorities believe that this is a resale business: that is, the materials purchased by the construction unit are resold to the construction enterprise, and the construction enterprise finally issues a general invoice to the construction unit for settlement, and the construction unit should be charged with value-added tax. As for the input tax, of course, it can be deducted. In this way, the construction enterprise can obtain the invoice of the materials, but the builder must pay the value-added tax on the sales of the materials. We believe that this approach is very wrong. The materials purchased by the construction unit are ultimately used for the construction unit's own projects, which is actually a self-use behavior and cannot be regarded as resale business to collect value-added tax. However, in practice, the first method is often not recognized by some tax authorities, who mechanically think that only invoices can be recorded. In fact, according to the Administrative Measures for Enterprise Income Tax Deduction, the relevant costs and expenses incurred by enterprises can be deducted before tax as long as they are true and have obtained legal and valid vouchers. Legal and valid vouchers here do not only refer to invoices. In this case, the final project report obtained by the construction enterprise and the invoice list of purchased materials provided by the construction party should also be regarded as legal and valid vouchers, and they are real. In order to avoid unnecessary disputes with some tax authorities, some construction units, which are general taxpayers of value-added tax, obtain special VAT invoices when purchasing materials, and declare the deduction, and then issue special VAT invoices to the construction party at the original price. There is no difference between these, and VAT is not to be paid. But in practice, most units are not willing to deal with it in this way.
2. Analysis of tax treatment of Mode 2
In the case of the second method, because the construction party directly included the project cost when sending out the materials, the construction party will not do any accounting treatment when receiving the materials and using them in the project in the future. At this time, the construction party will invoice at10 million, so there is no problem that 2 million materials supplied by Party A cannot obtain the invoice and enter the cost. At the same time, considering the reasons that the tax authorities are not in place, this accounting treatment method can also pay less business tax on some materials supplied by Party A, which is beneficial to both parties. However, the construction party should also know that in this case, it bears great risks. If the tax authorities find out, the construction party must pay the business tax on materials supplied by Party A, or even be punished for tax evasion. At the same time, because materials supplied by Party A did not raise taxes with the construction party according to regulations, it can only be borne by itself in the end.
(5) Conclusion
At present, the relevant laws and regulations have no clear provisions on how to deal with the accounting of materials supplied by Party A. Therefore, from a certain point of view, the above two modes are all possible.
From the point of view of tax authorities, they prefer to adopt the first mode, which can well collect the tax of materials supplied by Party A into the scope of supervision. Therefore, some tax authorities clearly stipulate that for projects, the construction party is not allowed to directly enter the project cost with commercial invoices, and must obtain construction invoices to enter the project cost. Otherwise, according to the failure to obtain legal and valid vouchers, this part of the cost cannot be depreciated and deducted before enterprise income tax. Of course, whether this provision is reasonable is debatable. But this is indeed a good supervision method.
From the enterprise's point of view, if we don't consider the problem of tax avoidance caused by inadequate tax supervision, the first method is also better. Because, when the construction party sends out the materials supplied by Party A, the materials are not immediately used in the project, but only transferred from the custody of the construction party to the custody of the construction party. From the accounting point of view, if the construction party issues the materials, it will be directly included in the project cost, but in fact, the materials have not been used in the project or are all used in the project, but only being included in the project under construction will lead to the distortion of accounting information. Moreover, if the second method is adopted, the construction party will not carry out accounting treatment on the materials received and sent out, which is not conducive to the use, supervision and management of the materials supplied by Party A in the project. Therefore, the second method does not meet the requirements of accounting and actual management. However, considering the problem of tax avoidance caused by inadequate tax supervision, the second method seems to be better. But as we said, in this case, the risk is mainly borne by the construction party.
Since Mode 1 is beneficial to the tax authorities, and it is also beneficial to enterprises regardless of the tax avoidance problem caused by inadequate tax supervision, then we will have a good solution to the problem of how to deal with the cost of materials supplied by construction enterprises. We believe that it is completely reasonable and legal for the construction enterprise to enter the cost according to the final report of the project and the invoice list of the purchased materials provided by the construction party. In practice, most tax authorities also recognize this treatment. According to the resale model, it is wrong in principle to sell invoices to the construction materials by the construction party, which is not desirable in practice.