The meaning is as follows:

"Business tax to value-added tax" means that taxable items that were previously subject to business tax are replaced by value-added tax. The Ministry of Finance and the State Administration of Taxation have stipulated that starting from May 1, 2018, the pilot program for replacing business tax with value-added tax will be launched nationwide. The real estate industry has been included in the pilot scope, and the payment of business tax on the purchase and sale of second-hand houses has been changed from paying business tax to value-added tax. If property rights changes are handled after May 1, 2018, value-added tax shall be paid and no business tax shall be paid.

Impact of replacing business tax with value-added tax:

After the "replacing business tax with value-added tax", business tax will be replaced by value-added tax. The main taxes required for the sale of second-hand houses are: value-added tax, deed tax, personal income tax, stamp duty, and land value-added tax. Except for stamp duty, all other taxes are calculated based on the price excluding tax. The basis for calculating stamp tax is the amount stated in the contract. If the house price and value-added tax are specified in the contract, the stamp tax will be calculated based on the listed house price.

Most of the policies have been transferred, but there are specific regulations on who should use the online signing price and the approved price as the tax base, that is, according to the principle of which is higher: the online signing price and the approved price per square meter The one with the higher price will take the base number. If the two are the same, the price signed online will be taken.