According to Article 12 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-added Tax (State Taxation Administration of The People's Republic of China Order No.50 of the Ministry of Finance of People's Republic of China (PRC)), "The extra-price expenses mentioned in the first paragraph of Article 6 of the Regulations include handling fees, subsidies, funds, collection fees, return profits, incentive fees, liquidated damages, late fees, deferred payment interest, compensation, collection funds, packaging fees, packaging rents and reserve fees charged to the buyer. ..... but does not include the following items:
(1) Consumption tax collected and remitted by consumer goods entrusted with processing consumption tax.
(2) Prepaid transportation expenses that meet the following conditions.
1. The invoice of transportation expenses of the carrier department is issued to the buyer.
2. The taxpayer transfers the invoice to the buyer.
Note: Generally speaking, out-of-price expenses are generally tax-included. Remember to convert them into tax-excluded sales when calculating sales.
At present, there are two main views on whether to levy VAT on the handling fees obtained by withholding agents and agents:
Advocate the collection of value-added tax: it is clearly levied according to brokerage services, and the tax rate is 6%. The reason is that although there is no explicit list of withholding and paying taxes in the brokerage services after the reform of the camp, because of the existence of "waiting", it does not belong to the category of positive listing and can include other corresponding situations. Obtaining the withholding fee shows that the withholding behavior belongs to paid agency behavior and can be included in the scope of brokerage services.
Do not advocate collecting value-added tax: clearly issue zero-rate value-added tax invoices. The reason is that withholding is a legal obligation and a non-operating activity, and the withholding agent must perform it regardless of whether it is paid or not, and the handling fee obtained is an incentive financial allocation.