First, the self-produced sand and gravel of construction enterprises are not subject to value-added tax in the transfer and use. According to the Detailed Rules for the Implementation of the Provisional Regulations on Value-added Tax: "Article 4 The following acts of units or individual industrial and commercial households shall be regarded as sales of goods: (1) Delivery of goods to other units or individuals for consignment; (2) Consignment of goods; (3) Taxpayers with more than two institutions and unified accounting transfer goods from one institution to other institutions for sale, unless the relevant institutions are located in the same county (city); (4) Non-VAT taxable items using self-produced or entrusted goods; (five) the goods produced or commissioned for processing are used for collective welfare or personal consumption; (6) Providing goods produced, processed or purchased as investment to other units or individual industrial and commercial households; (7) Distributing goods produced by oneself, processed on commission or purchased to shareholders or investors; (8) Giving goods produced, entrusted or purchased to other units or individuals free of charge. " The self-produced sand and gravel used by construction enterprises for their own construction projects belong to the self-produced goods used in VAT taxable items, and do not belong to the scope of VAT paid as sales, and do not need to pay VAT.
According to the Announcement of State Taxation Administration of The People's Republic of China on Further Clarifying the Issues Concerning the Collection and Management of Value-added Tax (State Taxation Administration of The People's Republic of China AnnouncementNo. 1 17), taxpayers sell self-produced goods such as prefabricated houses, machinery and equipment, steel structures and provide construction and installation services at the same time. The "self-produced goods" that do not belong to the "Implementation Measures for the Pilot Project of Changing Business Tax to VAT" (Caishui [20 16) are based on the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on the Policy of Applying Low VAT Rate to Some Goods and Collecting VAT by Simple Method (Caishui [2009] No.9). General taxpayers can choose to sell sand, soil, stone and other goods for building materials for their own use according to the simple method. Therefore, taxpayers can choose simple taxation for the sand collected by themselves, and the value-added tax is paid for construction services at the rate of 9%.
Two, the construction enterprise shall pay the resource tax for the transfer of sand and gravel. According to Article 5 of the Resource Tax Law: "Taxpayers who exploit or produce taxable products for their own use shall pay resource tax in accordance with the provisions of this Law; However, if it is used for continuous production of taxable products, no resource tax will be paid. " According to the Announcement on the Implementation of Resource Tax (Announcement No.34 of the Ministry of Finance and State Taxation Administration of The People's Republic of China in 2020), taxpayers should pay resource tax on taxable products for their own use, including taxpayers' use of taxable products for non-monetary assets exchange, donation, debt repayment, sponsorship, fund-raising, investment, advertising, samples, employee welfare, profit distribution or continuous production of non-taxable products. Therefore, construction enterprises should pay resource tax when using their own sand and gravel in engineering projects.
According to the current regulations, the tax rate of raw sand and gravel ore or dressing is 1% to 5%, and it can also be collected from 5 yuan at 0. 1 yuan per ton. There are two ways to collect sand and gravel mines, one is ad valorem collection, the other is specific collection, and a more reasonable collection method can be selected according to the actual situation. For taxpayers' self-use taxable products that are not sold at an ad valorem rate, the competent tax authorities may determine the sales amount of taxable products according to the following methods and order: (1) According to the average sales price of similar products of taxpayers in the near future. (2) According to the recent average selling price of similar products of other taxpayers. (3) It shall be determined according to the sales price of non-taxable products for subsequent processing, minus the costs and profits of subsequent processing links. (four) the taxable value according to the composition of taxable products. Taxable value of components = cost ×( 1 cost profit rate) ÷( 1- resource tax rate). The cost profit rate in the above formula shall be determined by the tax authorities of provinces, autonomous regions and municipalities directly under the Central Government. (five) determined by other reasonable methods.