When a real estate development enterprise receives an advance payment, it can issue an ordinary VAT invoice to the home buyer. When issuing an ordinary VAT invoice, it temporarily chooses "zero-rate" invoicing, and the amount is the actual amount received. Advance payment received. List the contracted area, price, and full price of the house in the remarks column of the invoice, and also indicate "Advance payment does not serve as proof of property rights transaction." During the reporting period of the month following the issuance of the invoice, declare through the "VAT Prepayment Form" and prepay the VAT in accordance with regulations. The amount of advance receipts is not reflected in Schedule (1) of the declaration form.

When the house is handed over, a value-added tax invoice will be issued for the full amount of the real estate sold, and the tax will be declared in accordance with regulations.

Announcement of the State Administration of Taxation on the "Interim Measures for the Collection and Administration of Value-Added Tax on Sales of Self-Developed Real Estate Projects by Real Estate Development Enterprises" (State Administration of Taxation Announcement No. 18, 2016):

Tenth Article

General taxpayers who sell self-developed real estate projects in the form of advance payments shall prepay value-added tax at a prepayment rate of 3% when receiving advance payments.

Article 11

The tax payable in advance is calculated according to the following formula:

The tax payable in advance = advance receipt ÷ (1 + applicable tax rate or Levy rate) × 3%

If the general tax calculation method is used to calculate tax, the applicable tax rate is 11%; if the simplified tax calculation method is used to calculate tax, the tax rate is 5%.

For example, for an old real estate development project, if you choose the simple tax calculation method to receive a pre-sale payment of 1 million yuan in advance, the value-added tax should be paid in advance:

100÷(1+5%)×3 %=28,570 yuan

If it is a new project started on May 1, 2016 or later, the value-added tax will be paid in advance:

100÷(1+11%)×3 %=27,027 yuan.