Taxpayers divide the act of selling houses into two acts: selling houses and decorating houses, sign two contracts (or contracts) respectively, and collect two prices from each other. In view of the clear stipulation in its renovation contract, renovation contract is an integral part of the real estate purchase and sale contract, and together with the purchase and sale contract * * * becomes the whole contract for purchasing real estate. Therefore, according to Article 5 of the Provisional Regulations of the People's Republic of China on Business Tax, "the taxpayer's turnover provides taxable services to the taxpayer, transfers intangible assets or sells real estate, and all the fees charged by the taxpayer to the other party and other expenses", the expenses for decoration and installation of equipment should be listed as the house price, and business tax should be levied according to the tax item of "selling real estate".

1998- 1-25 State Taxation Administration of The People's Republic of China