1. What is the VAT rate for water charges?
According to the provisions of the tax law:
1. The VAT rate of tap water is 10%.
2. The general taxpayer who produces and sells tap water can calculate and pay the value-added tax at the rate of 6% according to the simple method, but the input tax shall not be deducted.
3. Ordinary taxpayers who produce tap water can choose to calculate and pay VAT at the rate of 10%, or they can choose to calculate and pay VAT according to the simple method. However, the selected VAT calculation and payment method shall not be changed for at least 3 years.
Therefore, although most ordinary taxpayers choose the simple collection method and pay VAT at the rate of 6%, the VAT rate applicable to tap water is still 10%. These are two different concepts.
Two. Scope of value-added tax collection
(1) general range
The scope of VAT collection includes selling imported goods and providing processing, repair and replacement services.
(2) Commodity futures for special projects
1. Commodity futures and precious metal futures are subject to value-added tax, and tax is paid in the physical delivery link;
2. The business of selling gold and silver by banks;
3. The pawnbroker sells dead goods;
4. Consignment business sells goods consigned by customers;
5. Other units and individuals outside the postal department produce, distribute and sell philatelic products.
(3) Special behavior
Special behaviors are regarded as sales: the following eight behaviors are regarded as sales of goods in the VAT law, and all of them are subject to VAT:
1. Deliver the goods to others for consignment;
2. Selling goods on behalf of others;
3. Transferring goods from one place to another place outside the same county and city;
4. Use the self-produced or entrusted goods for non-taxable items;
5, the production, commissioned processing or purchase of goods as an investment in other units;
6. Distribute the self-produced, commissioned or purchased goods to shareholders or investors;
7. Use the self-produced or entrusted goods for employee welfare or personal consumption;
8. Give the self-produced, commissioned or purchased goods to others free of charge.
Three. VAT taxpayer
(1) General taxpayer
1. Taxpayers who produce goods or provide taxable services, and taxpayers who mainly produce goods or provide taxable services, that is, taxpayers whose annual sales of goods or provide taxable services account for more than 50% of taxable sales, and are engaged in wholesale or retail of goods at the same time, with annual taxable sales exceeding 500,000.
2, engaged in wholesale or retail business, annual taxable sales of more than 800 thousand yuan.
(2) Small-scale taxpayers
1. Taxpayers who are engaged in the production of goods or provide taxable services, and taxpayers who are mainly engaged in the production of goods or provide taxable services, that is, taxpayers whose annual sales of goods or services account for more than 50% of the annual taxable sales, and who also engage in the wholesale or retail of goods, are qualified for VAT sales, which are referred to as taxable sales of less than 500,000 yuan and including 500,000 yuan.
2. For taxpayers other than the above provisions, the annual taxable sales amount is less than 800,000 yuan, inclusive.
The legal system of value-added tax has very clear provisions on the value-added tax rate of water charges. Generally, the value-added tax rate of tap water is different from that of tap water sold after processing. In the process of water use, the corresponding VAT rate has been deducted. As a non-renewable scarce resource, tap water should also be used sparingly.