Sales Of Tap Water And Other Products Should Be Evaluated By Taxation.

The existing tax policy stipulates that the general taxpayer can pay value-added tax on products such as tap water, building sand, stone and other products, and can be appointed as taxpayers to choose the tax calculation method of the tax deduction or the simple tax calculation method to calculate the value added tax.

The principle of choice should be considered from two main points: first, it affects the degree of operation. After the simple tax calculation is adopted by the general taxpayer, the tax rate should be assessed at 6% or 4%. At most, the tax authorities can only substitute the VAT invoices on the basis of the actual amount of tax, which will lead to the buyer's relative deduction of the tax. This will take into account the extent of the operation.

Assuming that the sales target is mainly personal consumers or non VAT paying units, it is advisable to choose a simple tax calculation method. If the sales target is mainly the VAT paying enterprises, especially the VAT general taxpayer enterprises, it will obviously affect the normal operation, so it is very important to choose the tax calculation method carefully.

Second, the state of the tax burden. If the tax burden rate is calculated to be greater than 6% or 4% according to the tax deduction of production tax, it is advisable to choose a simple tax calculation method.

For example, the tap water produced by a waterworks is mainly consumed by residents, namely personal consumption, and the proportion of water consumed by enterprises and institutions is relatively small.

The factory applied to the tax authorities for approval of the general taxpayer of value added tax.

In 2000, the annual sales volume of the plant was 2 million 500 thousand yuan, and the amount of VAT input tax was very small. The amount of input tax specified in the special VAT invoices such as electricity charges was 75 thousand yuan, and the taxable amount calculated according to the tax deduction of production tax was 250X13% - 7.5 = 250 thousand yuan.

The burden rate of value-added tax is 25 * 250 x 100% = 10%, and its tax burden is obviously higher than the rate of 6%.

If the factory calculates the value added tax in a simple way in 2000, it can save 100 thousand yuan (25-250 * 6%).

Obviously, it is very important to choose different tax calculation methods.

Wei