After the replacement of self operated enterprises with value-added enterprises, the double taxation was avoided and the method of difference taxation was introduced
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What is differential taxation? The document No
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36 of 2016 stipulates that if the simple tax method is applicable to the provision of construction services, the sales amount shall be the balance of the total price and extra price expenses obtained after deducting the subcontract payment paid
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The general tax can be deducted by VAT invoice, but the general tax can’t be deducted by the difference, only the subcontract payment can be deducted when the VAT is paid in advance
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What is construction service? It refers to the construction, repair and decoration of various buildings, structures and their ancillary facilities, the installation of lines, pipelines, equipment and facilities, and other engineering operations
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Including engineering services, installation services, repair services, decoration services and other building services
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According to the notice of the Ministry of Finance and the State Administration of Taxation on comprehensively promoting the pilot project of replacing business tax with value-added tax (CS [2016] No
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36), if the simple tax calculation method is applicable to the construction services provided by the pilot taxpayers, the sales amount shall be calculated based on the balance of the total price and extra price expenses after deducting the subcontracting payment, and the tax payable shall be calculated according to the collection rate of 3%
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The simple tax calculation mainly includes the following situations: 1
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The construction project starts before May 1, 2016; 2
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The project supplied by Party A in the new project; 3
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The contractor in the new project; 4
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The general contractor provides engineering services for the foundation, foundation and main structure of the building, and the construction unit purchases all or part of the steel, concrete, masonry materials and precast concrete 5
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In addition, whether it is the general tax calculation of the construction industry or the simple tax calculation, if the value-added tax needs to be paid in advance in other places, it also involves the problem of prepayment after the difference, that is, the prepayment in other places of the construction industry should be 2% (general tax) according to the total price and the non price expenses minus the subcontracting payment Or 3% (simple tax) prepay VAT in other places
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Only in the case of simple tax calculation can we enjoy the policy of differential tax payment
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Secondly, when prepaying, we can pay differential tax regardless of whether the item is general tax calculation or simple tax calculation
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However, when returning to the place where the institution is located, the general tax items shall be fully taxed
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Financial and tax treatment of construction enterprise’s total subcontracting difference taxation business (1) analysis of accounting basis of construction enterprise’s difference taxation reduction “engineering construction” 1
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Accounting subject for simple taxation: simple taxation
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According to the notice of the Ministry of Finance on printing and distributing the regulations on accounting treatment of value added tax (CK [2016] No
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22), the secondary subject “simple tax calculation” is a detailed subject to calculate the value-added tax calculation, deduction, prepayment, payment and other businesses of general taxpayers using simple tax calculation method
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Therefore, when a construction enterprise chooses simple tax calculation to carry out subcontracting business, it will collect value-added tax after deducting the difference of subcontracting amount, and the value-added tax to be paid will be accounted in the “simple tax calculation” account
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2
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The accounting treatment of “engineering construction” reduced by the difference tax of construction enterprises
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According to the regulation of ckk [2016] No
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22, according to the current value-added tax system, if the sales amount is allowed to be deducted from the relevant costs and expenses incurred by the enterprise, when the costs and expenses are incurred, the “main business cost”, “inventory”, “engineering construction” and other items are debited and the “accounts payable”, “notes payable”, “bank deposit” and other items are credited according to the amount payable or actually paid
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When the compliance VAT deduction certificate is obtained and the tax liability occurs, the subject of “tax payable VAT (output tax deduction)” or “tax payable simple tax calculation” is debited according to the allowable deduction amount, and the subject of “tax payable VAT” is debited (small-scale taxpayers are debited), and the subject of “main business cost”, “inventory” and “engineering construction” is credited And so on
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The second level subject “prepayment of VAT” is to calculate the amount of VAT that should be paid in advance according to the current VAT system, such as the transfer of real estate by general taxpayers, the provision of real estate business leasing services, the provision of construction services, and the sale of self-developed real estate projects by means of prepayment
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At the end of the month, the enterprise transfers the balance of the detailed subject of “prepayment of VAT” to the detailed subject of “unpaid VAT”
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At the end of the month, the enterprise transfers the balance of “prepayment of VAT” to the detailed subject of “unpaid VAT”
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At the end of the month, the enterprise transfers the balance of “prepayment of VAT” to the detailed subject of “unpaid VAT” The treatment is: Borrowing: taxes payable – simple tax calculation; loaning: Engineering Construction – contract cost (2) case analysis: financial and tax treatment of construction enterprise’s total subcontracting differential taxation business accounting: a company in Shandong contracted an engineering project with a contract value of 10 million yuan (including value-added tax) in Shanxi, and subcontracted part of the project with a contract value of 3 million yuan (including value-added tax) After the completion of the project, the final settlement value of the project is 10 million yuan (including VAT)
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Assuming that the project is an old project, company a and company B adopt simple tax calculation
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The total contract cost of the project completed by company a is 5 million yuan
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Please analyze how company a conducts accounting? Accounting of general contractor company a (unit: 10000 yuan) (1) when completing the contract cost: Borrow: Project Construction – contract cost 500; loan: raw materials, etc
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500 (2) receive the general contract payment: Borrow: bank deposit 1000; loan: project settlement 970.87 taxes payable – easy tax 29.13 (3) when subcontracting project settlement: Borrow: Project Construction – contract cost 300 credit: accounts payable – when company B 300 (4) makes full payment for the subcontract project and obtains the general VAT invoice issued by the subcontractor, it borrows: accounts payable – Company B 300 credit: bank deposit 300 (5) accounting treatment of company a’s difference tax to reduce “project construction” cost debit: taxes payable – simple tax 8.74 credit: Project Construction – contract Cost 8.74 (6) company a confirms the income and expense of the project: Debit: main business cost 791.26; project construction – contract gross profit 179.61; Credit: main business income 970.87 (7) project settlement and project construction hedge balance: Debit: project settlement 970.87; Credit: Project Construction – contract cost 791.26 – contract gross profit 1.00 79.61 (8) accounting treatment of prepaid tax = (1000-300) / (1 + 3%) × 3%) = 203800 yuan to Shanxi Taxation Bureau where the project is located: Debit: tax payable – prepaid VAT 20.38 loan: bank deposit 20.38 debit: tax payable – unpaid VAT 20.38 credit: tax payable – prepaid VAT 20.38 tax treatment: full invoice, balance calculation The county (city, district) where the construction service takes place and the name of the project shall be indicated in the remark column of the tax invoice
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In the case of simple tax calculation, the general prepayment tax is equal to the tax declared to the local competent tax authorities
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Party A’s tax return is calculated according to the difference: (1000-300) / (1 + 3%) × 3% = 203800 yuan
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When the simple tax calculation method is adopted for construction, the difference tax calculation is adopted for invoice issuing, but the full amount invoice is issued
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This is different from the difference invoice for real estate sales, labor dispatch, human resource outsourcing services and tourism services
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Company a can issue the special VAT invoice in full amount.
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