How To Solve The Problem Of Invoice Issuing For Mixed Materials Sales?

The notice of the State Administration of Taxation on the tax issues concerning taxpayers selling self produced goods and providing labor services for construction industry at the same time (No. twenty-third of the State Administration of Taxation announcement 2011) stipulates that taxpayers selling self-produced goods and providing labor services in the construction industry shall, in accordance with the provisions of the sixth detailed rules for the implementation of the Provisional Regulations on value-added tax and the seventh detailed rules for the implementation of the Provisional Regulations on business tax, separately calculate the sales volume of their goods and the turnover of construction labor services, and calculate the value-added tax according to the sales volume of their goods, and calculate the sales tax according to the turnover of their construction labor services.

In the absence of accounting, the competent tax authorities shall separately approve the sales volume of their goods and the turnover of construction labor services.

Q: a company (builder) signs construction and installation contract with B company (constructor). If B company provides construction materials at the same time of construction, should the material used for use be vat or business tax invoice?

Answer: the sixth provision of the detailed rules for the implementation of the Provisional Regulations on business tax stipulates that a sales act involves both taxable services and goods, which is a mixed selling behavior.

In addition to the provisions of article seventh of these rules, the mixed sale behavior of enterprises, enterprise units and individual industrial and commercial households engaged in the production, wholesale or retail of goods shall be regarded as selling goods without paying business tax, and the mixed sale behavior of other units and individuals shall be regarded as supplying tax service and paying business tax.

The term "goods" mentioned in paragraph 1 refers to tangible movable property, including electricity, heat and gas.

The enterprises, enterprise units and individual industrial and commercial households engaged in the production, wholesale or retail of goods, including those engaged in the production, wholesale or retail of goods, shall also be included in the first paragraph.

Enterprises, enterprises and individual businesses.

The seventh rule is that

In the following mixed sales activities, the turnover of the taxable labor and the sales volume of the goods shall be accounted for separately, the turnover of the taxable labor service shall be paid, and the sales tax of the goods shall not be paid.

(1) providing sales of construction services at the same time.

Act;

(two) other circumstances stipulated by the Ministry of Finance and the State Administration of taxation.

Taxpayers selling self-produced goods and providing labor services in the construction industry must provide certificates of local taxpayers to the local tax authorities of the construction industry where the taxpayer is the unit or individual engaged in the production of goods.

The local tax authorities of the construction industry shall calculate the business tax according to the relevant provisions of this announcement according to the certificate of the taxpayer.

According to the above policy, the construction enterprises provide construction labor services and sell goods. They should distinguish whether the goods sold are self produced or purchased. If the goods sold are self produced, they should pay value-added tax on the materials sold separately, pay the business tax on the sales of construction materials, pay the business tax separately, and separately issue certificates to the local tax authorities of the local authorities in charge of the construction industry, which are issued by the competent state tax authorities of the local authorities. The taxpayers belong to the units or individuals engaged in the production of goods. If the goods sold for them are purchased, they belong to the mixed selling behavior, and the business tax is paid on the total income they earn and the local tax invoice is issued.