According to the relevant provisions of the "Value-Added Tax Law", if this unit is engaged in urban greening, it should pay business tax, not value-added tax.

1. Taxpayers of value-added tax

Units and individuals that sell goods or provide processing, repair and repair services and import goods within the territory of the People’s Republic of China are subject to value-added tax. taxpayer.

II. Scope of VAT collection

The scope of VAT collection includes: 1. Goods; 2. Taxable services; 3. Imported goods.

3. Value-added tax rate

The value-added tax rate is divided into three levels: basic tax rate 17%, low tax rate 13% and zero tax rate.

IV. The tax basis for value-added tax

The tax basis for taxpayers selling goods or providing taxable services is their sales volume, and the tax basis for imported goods is the prescribed composition Taxable price.

5. Calculation of value-added tax payable

1. Tax payable for general taxpayers = current output tax – current input tax.

2. The tax payable by small-scale taxpayers = sales volume ÷ (1 + collection rate) × collection rate

3. The tax payable on imported goods = (duties paid Price + customs duty + consumption tax) × tax rate

6. Value-added tax declaration and tax payment location

The VAT declaration time is related to the tax payment deadline approved by the competent state tax authority. Taxpayers whose tax period is one month shall declare tax within 10 days from the expiration date; taxpayers whose tax period is one day, 3rd, 5th, 10th or 15th shall declare tax within 10 days from the expiration of the period. Prepay the tax within 5 days from the first day of the month, and declare and settle the tax payable for the previous month from the 1st to the 10th of the following month.

Fixed VAT business owners shall declare and pay tax to the tax authority where the institution is located, and VAT non-fixed business owners shall declare and pay tax to the tax authority at the place of sales. Imported goods shall be declared and paid by the importer or his agent to the customs at the place of declaration. .

7. Preferential policies for value-added tax

1. Self-produced primary agricultural products sold by agricultural producers;

2. Contraceptives and appliances;

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3. Old books;

4. Imported instruments and equipment directly used for scientific research, scientific experiments and teaching;

5. Foreign governments and international organizations free of charge Assisted imported materials and equipment;

6. Imported equipment required for processing of supplied materials, assembly of supplied parts and compensation trade;

7. Directly imported by organizations of persons with disabilities for persons with disabilities Special items;

8. Used items sold by yourself (excluding yachts, motorcycles, and cars subject to consumption tax).

VAT collection scope

The scope of VAT collection includes: sales and import of goods, provision of processing and repair services. The goods here refer to tangible movable property, including electricity, heat, gas, etc., excluding real estate. Processing refers to the business of entrusting the processing of goods, that is, the entrusting party provides raw materials and main materials, and the entrusting party manufactures the goods according to the entrusting party's requirements and collects processing fees; repair and repair refers to the entrustment to repair damaged and loss-of-function goods to restore them. Business in its original condition and functionality.

In addition, the following activities are regarded as sales of goods and are subject to VAT.

Selling goods to others for sale

Selling goods on behalf of others

Moving goods from one place to another (except in the same county or city)

Use self-produced or commissioned-processed goods for non-taxable projects

Use self-produced, commissioned-processed or purchased goods as investments in other units

Use self-produced or commissioned-processed goods for non-taxable projects Distribute goods produced, entrusted for processing or purchased to shareholders or investors

Use self-produced, entrusted processing or purchased goods for employee welfare or personal consumption

Use self-produced, entrusted processing or purchased goods The purchased goods are given to others free of charge

In China, the scope of collection of value-added tax and the scope of collection of business tax do not overlap with each other. If value-added tax is levied, business tax will not be levied, and if business tax is levied, value-added tax will not be levied. However, in actual economic activities, there are taxable behaviors of taxpayers operating concurrently or mixed operations.

If a sales activity involves both VAT taxable goods and business tax taxable services, it is regarded as a mixed sales activity. For example, a taxpayer sells goods and is responsible for transportation, and the sale of goods is VAT. The scope of collection, transportation is the scope of business tax collection. The tax treatment method for this is that taxpayers whose main business is the production, wholesale or retail of goods (referring to taxpayers whose annual sales of goods account for more than 50% of their total turnover) will all be deemed to be selling goods and levied value-added tax. , no business tax is levied; other taxpayers who are not engaged in the production, wholesale or retail of goods are all regarded as taxable services under business tax and no longer levied value-added tax.

Different from mixed sales behavior, concurrent operation behavior means that the taxpayer engages in business tax taxable behavior while engaging in value-added tax taxable behavior, and there is no direct connection or affiliation between the two. relation. The tax treatment method for this is to require taxpayers to calculate the two separately and pay tax separately. If they cannot calculate separately or the separate calculation is inaccurate, all VAT will be levied.

Other more special VAT taxable scopes include: physical delivery of goods futures, sales of dead pawns, production and sales of philatelic goods by non-postal departments (postal departments pay business tax for the production and sale of philatelic goods), etc. .

Taxpayers

All units and individuals that engage in VAT taxable activities, as well as withholding agents who do not engage in VAT taxable activities but have the obligation to withhold VAT, are Is the taxpayer of value-added tax. Before 1994, foreign-funded enterprises paid the unified industrial and commercial tax and were not taxpayers of value-added tax. However, on November 6, 1993, the State Administration of Taxation issued Guoshuifa [1993] No. 138 "Notice on Issues Related to the Collection and Administration of Value-Added Tax on Foreign-related Taxes" 》After that, foreign-invested enterprises also became taxpayers of value-added tax from January 1, 1994.

Since VAT implements a tax deduction system based on special VAT invoices, taxpayers have higher accounting requirements and are required to be able to accurately calculate output tax, input tax and tax payable. However, the actual situation is that many taxpayers cannot meet this requirement. Therefore, the "Interim Regulations of the People's Republic of China on Value-Added Tax" divides taxpayers into general taxpayers and small taxpayers based on their business scale and whether their accounting is sound. Scale taxpayers. The specific classification standards are:

For production taxpayers, the annual value-added tax taxable sales is 1 million yuan;

For non-production taxpayers such as wholesale and retail, the annual value-added tax Taxable sales were RMB 1.8 million.

Small-scale taxpayers

Those whose annual sales do not meet the above standards are small-scale taxpayers. In addition, individuals, non-enterprise entities and those who do not frequently engage in VAT taxable activities Businesses are also recognized as small-scale taxpayers. Small-scale taxpayers can become general taxpayers after their application is approved after meeting the standards.

For small-scale taxpayers, a simplified method is implemented to collect value-added tax, and their input tax is not allowed to be deducted.

General taxpayers

Those whose annual VAT taxable sales meet the standard can become general taxpayers. In addition, for production taxpayers, this standard can be relaxed if their accounting is sound. to 300,000 yuan, but for non-production commercial and trading enterprises, regardless of whether their accounting is sound or not, they must meet the standards before they can be recognized as general taxpayers. In addition, since the state has mandated the promotion of tax-controlled refueling machines since 1999 and banned the production and sale of non-tax-controlled refueling machines, the State Administration of Taxation issued Guo Shui Han [2001] No. 882 on December 3, 2001, "About gas station regulations." According to the "Notice on the Collection of General VAT Taxpayers", starting from January 1, 2002, all gas stations engaged in the sale of refined oil will be recognized as general taxpayers, regardless of whether their scale meets the standards and whether their accounting is sound.

If an enterprise that has been identified as a general taxpayer does not have the following behaviors, its general taxpayer qualification will not be canceled even if the taxable sales in a certain year do not meet the standards.

Falsely issuing special VAT invoices or committing acts of stealing, cheating or resisting taxes;

Failure to declare for 3 consecutive months or making abnormal tax returns for 6 consecutive months without legitimate reasons;

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Failure to keep and use special value-added tax invoices and tax control devices in accordance with regulations will cause serious consequences.

For commercial enterprises that have just become general taxpayers (including small-scale taxpayers who have converted to general taxpayers), they need to go through a tax tutoring period before they can become official general taxpayers. The tutoring period is generally not less than 6 moon. During the counseling period, the tax department will carry out stricter management, including: limiting the number of special invoices purchased each month. If an oversubscription is required, the sales amount of the special invoice issued for the previous acquisition must be reported to the competent tax authority. Prepay 4% VAT and more.

After the counseling period reaches 6 months, the tax authorities should conduct a comprehensive review. If the following conditions are met, the taxpayer can be recognized as a formal general taxpayer.

The conclusion of the tax assessment is normal

The results of interviews and on-site inspections are normal

The enterprise's declaration and payment of taxes are normal

The enterprise can Accurately calculate input and output tax, and correctly obtain and issue special invoices and other legal input tax deduction certificates

If one of the above conditions is not met, the competent tax authority may extend the tax guidance period or cancel it Its general taxpayer qualification.

Tax rate and collection rate

Basic tax rate and low tax rate are applicable to general VAT taxpayers. The collection rate is applicable to small-scale taxpayers, and the collection rate is also applicable to general taxpayers selling second-hand goods.

Basic tax rate

For general taxpayers of value-added tax who engage in taxable activities, except for the following low taxes and exemptions, a basic tax rate of 17% applies. For tobacco, alcohol, Special goods such as luxury goods are subject to additional consumption tax to adjust the tax burden.

Low tax rate

In order to reduce the tax burden of certain industries, in addition to the basic tax rate, another low tax rate of 13% is provided. The goods applicable to the low tax rate are: agricultural products ; Heating, air conditioning, hot water, coal gas, liquefied petroleum gas, natural gas, biogas, coal products for residential use; books, newspapers, magazines; feed, fertilizers, pesticides, agricultural machinery (excluding agricultural machinery parts) agricultural films; metals and non-metals Mineral processing products and other goods specified by the State Council. General VAT taxpayers who sell or import the above-mentioned goods are levied VAT at a low rate of 13%.

Collection rate

The applicable collection rate for small-scale taxpayers is 4% for commercial small-scale taxpayers; for industrial small-scale taxpayers, the applicable collection rate is 4%. The rate is 6%, and no input tax can be deducted.

In addition, according to the "Notice on Value-Added Tax Policies for Used Goods and Used Motor Vehicles" issued by the Ministry of Finance and Taxation [2002] No. 29, starting from January 1, 2002, taxpayers [regardless of whether they are VAT General taxpayers or small-scale taxpayers) who sell second-hand goods shall calculate the tax at a 4% tax rate and then reduce the value-added tax by half, and the input tax shall not be deducted. If a taxpayer sells his or her used motor vehicles, motorcycles, or yachts that are subject to consumption tax, and the selling price exceeds the original value, the tax amount will be calculated based on a 4% collection rate, and then the value-added tax will be halved; if the selling price does not exceed the original value, the value-added tax will be levied. Exempt from VAT. When a used motor vehicle business unit sells used motor vehicles, motorcycles, or yachts, the value-added tax will be levied after calculating the tax amount at a 4% collection rate and then reducing it by half.

For tap water sold by water companies, the value-added tax is also levied at a 6% tax rate according to the "Notice on Value-Added Tax Policy Issues in the Tap Water Industry" issued by the State Administration of Taxation on May 17, 2002, Guoshuifa [2002] No. 56 However, the VAT stated on the special VAT invoice obtained for the tap water purchased from the water plant can be deducted.

The crude oil and natural gas extracted from Sino-foreign cooperative oil (gas) fields shall be subject to value-added tax, consumption tax, business tax, etc. "Notice on Issues Related to the Interim Regulations on Taxation" levies value-added tax at a collection rate of 5%.

Tax reduction and exemption

Article 16 of the "Interim Regulations of the People's Republic of China on Value-Added Tax" stipulates that the following eight items are exempt from value-added tax:

Self-produced agricultural products sold by agricultural producers

Contraceptives and appliances

Old books

Imported instruments directly used for scientific research, scientific experiments and teaching , equipment

Imported materials and equipment provided with free assistance from foreign governments and international organizations

Imported equipment required for processing of supplied materials, assembly of supplied parts and compensation trade

Items for use by persons with disabilities directly imported by organizations of persons with disabilities

Items used by oneself for sale

In addition, value-added tax will also be exempted if the threshold is not reached. The right to reduce or reduce VAT lies with the State Council. No region or department has the right to reduce or reduce VAT. However, each provincial-level tax bureau can determine the applicable threshold based on local actual conditions within the specified range.