Notice on several issues concerning the implementation of value-added tax transformation reform in China
(Caishui [2008] 170No.)
The finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning, the State Administration of Taxation and the Finance Bureau of Xinjiang Production and Construction Corps:
In order to improve the value-added tax system and promote the steady and rapid development of the national economy, the State Council has decided to implement the transformation and reform of value-added tax nationwide from 1 month/day in 2009. In order to ensure the implementation of the reform, the relevant issues are hereby notified as follows:
A, since 2009 1 month 1 day, general VAT taxpayers (hereinafter referred to as taxpayers) purchase (including donations, investment in kind, the same below) or self-made (including renovation, expansion and installation, the same below) fixed assets input tax (hereinafter referred to as fixed assets input tax), according to the "People's Republic of China * * * and China. The relevant provisions of the Regulations and the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-added Tax (Order No.50 of State Taxation Administration of The People's Republic of China of the Ministry of Finance, hereinafter referred to as the Detailed Rules) shall be deducted from the output tax by special invoices for value-added tax, special payment books for customs import value-added tax and settlement documents for transportation expenses (hereinafter referred to as the VAT tax deduction certificate), and the input tax shall be recorded in the subject of "Taxes payable and VAT payable (input tax)".
II. The input tax on fixed assets that taxpayers are allowed to deduct refers to the amount actually incurred by taxpayers after 2009 1 month 1 day (including 1 month/day, the same below) and obtained after 2009 1 month/day.
Fixed assets refer to machines, machinery, means of transport and other equipment, tools and appliances related to production and operation with a service life exceeding 12 months. For general taxpayers' real estate and goods purchased for real estate construction in progress, input tax deduction is not allowed. At the same time, Article 23 of the Detailed Rules for the Implementation of the Provisional Regulations on Value-added Tax defines real estate and real estate projects under construction, that is, "real estate refers to property that cannot be moved or will change its nature and shape after moving, including buildings, structures and other land attachments. Taxpayers' new construction, renovation, expansion, repair and decoration of real estate are all real estate projects under construction. "
The Ministry of Finance and State Taxation Administration of The People's Republic of China issued the Notice on the Deduction of Input Tax on Fixed Assets (Caishui [2009]113), which clarified the relevant issues. The details are as follows:
The building mentioned in the second paragraph of Article 23 of the Detailed Rules for the Implementation of the Provisional Regulations on Value-added Tax refers to the house or place where people can produce, live and engage in other activities, specifically the house with the first two digits of "02" in the Classification and Code of Fixed Assets (GB/T 14885- 1994); The term "structures" refers to artificial structures in which people do not produce and live, specifically, the structures with the first two digits of "03" in the Classification and Code of Fixed Assets (GB/T 14885- 1994); The term "other land attachments" refers to mineral resources and plants growing on the land.
The document Caishui [2009]113 also made it clear that "ancillary equipment and supporting facilities based on buildings or structures, regardless of whether they are accounted for separately or not, should be regarded as an integral part of buildings or structures, and their input tax shall not be deducted from the output tax. Auxiliary equipment and supporting facilities refer to: water supply and drainage, heating, sanitation, ventilation, lighting, communication, gas, fire protection, central air conditioning, elevators, electricity, intelligent building equipment and supporting facilities. "