q: the water supply company charges the installation fee for the customer to replace the water meter, but also charges the money for selling the water meter. What tax is paid for selling the water meter? In addition, the tap water industry is simply levied at 6%. If the water meter is sold to pay VAT, how can the input tax be deducted?

A: The Provisional Regulations of the People's Republic of China on Value-added Tax (Order No.538 of the State Council, People's Republic of China, 28) stipulates:

"Article 1 Units and individuals that sell goods or provide processing, repair and replacement services and import goods within the territory of the People's Republic of China are taxpayers of value-added tax and shall pay value-added tax in accordance with these regulations.

Article 3 Taxpayers engaged in goods or taxable services with different tax rates shall separately account for the sales of goods or taxable services with different tax rates; If the sales amount is not accounted for separately, the higher tax rate shall apply.

article 8 the value-added tax paid or borne by taxpayers for purchasing goods or accepting taxable services (hereinafter referred to as purchasing goods or taxable services) is the input tax.

The following input tax amount is allowed to be deducted from the output tax amount:

(1) VAT indicated on the special VAT invoice obtained from the seller.

Article 9 If a taxpayer purchases goods or taxable services and obtains a VAT deduction certificate that does not comply with laws, administrative regulations or the relevant provisions of the competent tax authorities in the State Council, the input tax amount shall not be deducted from the output tax amount. "

Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-added Tax (Order No.5 of the Ministry of Finance and State Taxation Administration of The People's Republic of China, 28) stipulates:

"The goods mentioned in Article 1 of Article 2 Regulations refer to tangible movable property, including electricity, heat and gas.

The VAT deduction voucher mentioned in Article 9 of Article 19 of the Regulations refers to the special VAT invoice, the special payment book for customs import VAT, the agricultural product purchase invoice, the agricultural product sales invoice and the transportation expense settlement document. "

your company should pay value-added tax according to regulations when selling water meters. if your company is a general taxpayer, you should separately account for the business of selling tap water and water meters. The input tax of VAT invoices obtained by purchasing water meters can be deducted from the output tax of selling water meters.