Is the value added tax on tap water 13% or 6%?

Is the value added tax on tap water 13% or 6%?

To find out the VAT rate applicable to tap water, please refer to the following summary:

Water production plants produce tap water and water companies sell tap water. They are not the same unit.

1. When a water factory sells tap water, the value added tax can be calculated as 3% or 13%. But if you choose 3%, the input tax cannot be deducted.

2. Sales of tap water by water companies that are general taxpayers are subject to value added tax at the collection rate of 3% using a simple method. The water company is not allowed to deduct the amount. indicated on the VAT deduction certificate for the purchase of tap water. For VAT, if the water company issues a special VAT invoice to the buyer and the buyer obtainsholds the special VAT invoice and meets the deduction conditions stipulated in the tax law, it can be deducted according to the tax indicated on the special VAT invoice. Deduct input tax.

3. When other units sell tap water, the output tax is calculated at 13%. If a special value added tax invoice is obtained, the input tax can be deducted.

During the exam, you must make judgments based on the conditions given in the questions to choose the applicable tax rate.

Is the tap water tax rate 13% or 3%?

General taxpayers who sell self-produced tap water may be subject to a tax rate of 13%, which can deduct input tax; they may also be subject to a 3% tax rate, but input tax cannot be deducted. Once selected, it cannot be modified within 36 months.

The rate ofBasic tax is 13%, but businesses can choose to pay tax at a tax rate of 3%. If they choose to pay tax at a tax rate of 3%, they cannot deduct the input tax.

Is tap water subject to VAT?

The scope of VAT includes: sales and importation of goods, provision of processing and repair services. Property here means tangible movable property, including electricity, heating, gas, etc., excluding real estate.

Tap water is of course included.

Value added tax bill for tap water

If the water user unit is a general taxpayer, you can ask the water company to issue a special increase bill tax for this one. You just need to provide it to the water company. with a copy of the tax registration certificate and the certificate of cgeneral taxpayer.

Note::::::::::::If the water company is a general taxpayer, then it is not qualified. go to the tax office to issue a tax increase invoice on his behalf, and must purchase the tax increase by himself. Tax invoices are issued to customers.

For issues like yours, you just need to negotiate with. the water company. However, since the water company is qualified to issue tax increase bills, it should issue them to your unit unconditionally.

The truth is on your unit's side!

< p> < /p> What is VAT on tap water and water companies?

1. Water companies selling tap water can choose either the general method of calculating taxes or the simplified method of calculating taxes;

2.Water companies from the tap of general taxpayers who sell tap water choose the methodSimplified method for collecting VAT at the collection rate of 3% (Before July 1, 2014, the VAT collection rate was 6%), but input tax cannot be deducted.

3. Water companies that are general taxpayers choose the general tax calculation method and apply a value added tax rate of 10% (13% before 1 July 2017 and 13% before May 1, 2018. The value added tax rate of 11% is implemented) The value added tax rate is used to calculate the output tax and the input tax can be deducted.

How much VAT must be paid when a water company sells tap water?

When a water company sells tap water, it can pay VAT at the rate of 11%. You can also choose the simplified calculation method. According to the tax methodVAT is calculated and paid according to thee VAT collection rate of 3%.

Policy Basis 1: “Notice of the Ministry of Finance and the State Tax Administration on Policies Consolidating Value-Added Tax Rates” (Caishui [2017 ] No. 37):

< p> From July 1, 2017, the VAT rate structure will be simplified and the 13% VAT rate will be removed. The relevant policies are now notified as follows:

1. Taxpayers selling or importing the following goodsare subject to a tax rate of 11%:

< p> Agricultural products (including cereals), < strong> Tap water, heating, liquefied petroleum gas, natural gas, edible vegetable oil, air conditioning, hot water, coal gas, residential products based on coal, edible salt, agricultural machinery, animal feed, pesticides, agricultural films, chemical fertilizers, biogas, dimethyl ether, livrs, newspapers, magazines, audiovisual products, electronic publications.

Policy basis 2: "Opinion of the Ministry of Finance and the State Tax Administration on the policy of applying low VAT rates and simplified methods of collection of VAT on certain goods" (Caishui [2009] No. 9):

(3) Ordinary taxpayers who sell the following self-produced goods may choose to calculate and pay value-added tax at the collection rate of 6% in accordance with the simplified method. (Caishui [2014] No. 57 “Regulations of the Ministry of Finance and State Administration of Taxation” Notice on Simplification of Value-Added Tax Collection Rate Policy》Article 2( 3) and article 3 of file no. 9 of Finance and Taxes [2009] “according to the tax rate of 6%” are adjusted to “according to the tax rate of 3%)< /strong>:< /p>

1. Electricity produced by pesmall hydroelectric units at or below the county level. Small hydropower units refer to small hydropower units with an installed capacity of less than 50,000 kilowatts (including 50,000 kilowatts) built by various investment entities.Hydroelectric power generation unit.

2. Sand, earth and stone used in construction and the production of building materials.

3. Bricks, tiles and lime continuously produced from self-extracted sand, earth, stone or other minerals (excluding solid clay bricks and tiles).

4. Biological products made from microorganisms, microbial metabolites, animal toxins, human or animal blood or tissues.

5. Tap water.

6. Commercial concrete (limited to cement concrete produced with cement as raw material).

A fOnce a general taxpayer has chosen the simplified method to calculate and pay VAT, it cannot be changed within 36 months.

How much value added tax does the water company pay for the sale of tap water?

Question: What percentage of value added tax does the water treatment plant and water company pay to sell tap water? Answer: According to the “Opinion of the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Collection of Value-Added Tax on Tap Water” (1994) Cai Shui Zi No. 14 : According to the decision of the State Council, sales of tap water to general value-added tax taxpayers should be compared with small hydropower and some construction materials below the county level. According to tax regulations on other products, the value taxr added can be collected at the rate of 6.%. You can calculate and collect VAT according to the simplified collection rate above, or you can calculate and pay VAT according to the regulations for general taxpayers instead of following the simplified method. The value added tax calculation and payment method chosen by a general taxpayer for the production of the goods mentioned above will not be changed for at least 3 years.

Is the water sold by the water company subject to value added tax or professional tax?

Scope of VAT payment: Sales of goods

Imported goods

Provision of taxable services

This good refers to tangible movable property, including including electricity, heating and gas Including (except real estate).

These tangible personal property are in reality intended for intangible assets.

It is easy to understand that whatever theIn the form of water, if it is tangible, it has added value. payment of tax (6%).

Is it pure water or tap water?

What questions do you want to ask?

Tap water is better than purified water. Tap water is living water.

Pure water and stagnant water will become stale after being left for a period of time.

Do you have to pay VAT on the tap water and electricity you receive?

It cannot be deducted

I think this question depends on whether you can get special VAT? invoice upon purchase. If you can get it, you can calculate it separately and pay tax at the rate of 17%, so the tax burden will be much lower than 6%. (Because the tax rate of 17% seems high, but it is levied on the value added amount and not on the total turnover amount) The installation of tap water and the installation of constructiwe are two different concepts, because the sale of tap water makes the installation stand out. business, it cannot therefore be attributed to professional tax. Separate accounting is a good idea for tax planning, so you might as well give it a try.