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Original title: Welcome Bonus for the Used Car Market General Tax Administration: Understanding the Concept and Scope of Used Cars Source:People Network-CNBC
To promote automobile consumption and industrial development, on April 8, the Ministry of Finance and the State Tax Administration issued the Announcement from the State Tax Administration on the Policy of Value Added Tax on the Distribution of Used Cars (No. 17, 2020, Announcement 17), It was clarified that from May 1, 2020 to December 31, 2023, taxpayers engaged in the distribution of used cars sold their used cars. To reduce the value added tax by 0.5%.
At the same time, the State Tax Administration issued the “Announcement from the State Tax Administration to clarify certain issues related to the collection and administration of certain value-added taxes, such as the distribution of second-hand cars” in response to the problem of the concentration of taxpayers. And the collection and management operations were clarified.
In order to make it easier for taxpayers to understand, master and enjoy the relevant management policies and measures in a timely manner, Wu Xiaoqiang, Deputy Director of the Property and Labor Tax Department of the State Tax Administration, will interpret common issues.
Wu Xiaoqiang pointed out that, first, we must understand the issues that apply the VAT reduction policy. The announcement clearly states that the objective of enjoying the reduced value added tax policy is the taxpayer who is in the business of selling second-hand cars, and the specific taxable behavior is to sell the second-hand car bought by him. . Therefore, whether it is a company or an individual industrial and commercial household, either a general taxpayer or a small-scale taxpayer, as long as you are engaged in acquiring a second-hand car reselling business, it can be reduced by a tax rate of 0.5%.
It should be noted that, in addition to the adjustments to applicable policies for taxpayers of used car dealers who sell their purchased used cars, the intermediary agency services provided by taxpayers involved in used car brokerage businesses , used car auctions and taxpayers who sell their used vehicles, are still implemented in accordance with current policy.
The second is to understand the concept and scope of used cars. Announcement No. 17 makes it clear that used cars refer to vehicles that have had their property processed and transferred before completing registration procedures and reaching the national mandatory disposal standard. The specific scope is implemented accordingly with the measures for the circulation of used cars promulgated by the Department of Commerce of the State Council.
It is understood that the current “Management measures for the circulation of used cars” were jointly issued by the Ministry of Commerce and other departments in August 2005 (Ministry of Commerce, Industry and Commerce Administration, Tax Administration No. 2 of 2005) . Article 2 of the Measures stipulates that Automobiles, trailers and motorcycles with specific conditions. Bearing in mind that the “Management Measures for the Circulation of Used Cars” may be revised in the future, in order to establish a good connection, Announcement 17 adopts a declaration of principles on the specific scope of used cars, and the operation It will be implemented in accordance with current effective management measures for the circulation of used cars.
Wu Xiaoqiang said that to ensure the implementation of preferential policies, Announcement No. 9 clarified the calculation of sales, the issuance of invoices and how to declare.
First, in the calculation of sales. In order to improve the certainty and uniformity of the implementation of the policy and to facilitate the understanding and implementation of taxpayers and base tax authorities, Announcement 9 clarified the method of calculating sales through the formula, that is: if taxpayers collect VAT at a rate of 0.5%, they must Sales without taxes are converted to 0.5%, that is, sales without taxes = sales with taxes / (1 + 0.5%). At the same time, in the future, Nu Skin has introduced a policy to change the value added tax rate, and all sales are calculated according to the principle of the formula above.
Secondly, on the issue of standardization of invoices. The “Administrative Measures for Used Car Circulation” stipulates that a unified invoice for the sale of used cars is a necessary certificate for the circulation of used cars. Taxpayers engaged in the distribution of used cars must issue a unified invoice for the sale of used cars.
It should be noted that the unified invoice for the sale of used cars does not indicate separately the amount of the value added tax, which is not a valid certificate to deduct the amount of the value added tax. In order to protect the input deduction rights of the taxpayer of the used car buyer, if the buyer is not an individual consumer and gets a special invoice with VAT, the taxpayer who is engaged in the business of used car dealers will issue A unified invoice for the sale of used cars before issuing a collection. A special VAT invoice with a rate of 0.5%. Second-hand car dealers should update the VAT invoice billing software as soon as possible and accurately select the collection rate to issue VAT invoices.
Third, on the subject of the tax return. Announcement n. ° 9 makes it clear that general taxpayers engaged in the sale of second-hand vehicles must reduce the sales tax collected by 0.5% when collecting VAT tax returns, and must complete the information attached to the “VAT tax declaration (1)》 (Details of the sales situation in the current period) The corresponding column of the collection rate of 3%; corresponding to the taxable amount of reduced VAT, 2.5% of the value is calculated sales and is completed in the “VAT tax declaration (applicable to general taxpayers)” “Tax reduction payable” and “List of tax reduction and tax exemption declaration” corresponding elements of tax reduction.
Small-scale taxpayers who are engaged in second-hand car dealer business, when handling VAT tax return, reduce the sales tax collected by 0.5% tax rate, must complete the “tax return VAT (for small-scale taxpayers) “3 Column corresponding to the percentage of the tax; corresponding to the taxable amount of reduced VAT, 2.5% of the sale value is calculated and you enter “VAT tax declaration (applicable to small-scale taxpayers)” “current taxable amount of reduced tax amount” AND the corresponding columns of the tax reduction items in the “Detailed list of VAT reduction and exemption declaration”.
