Tax policy for property companies to collect water and electricity charges

The tax policies for property companies to collect utilities are as follows:

1. Taxpayers who provide property management services charge tap water fees to the clients, and the sales amount is the balance after deducting the tap water fees paid by them, and the value-added tax is calculated and paid at the rate of 3% according to the simple tax calculation method;

2. Property management refers to the activities of owners and property service enterprises to maintain, conserve and manage houses, supporting facilities, equipment and related sites by hiring property service enterprises, and to maintain environmental sanitation and related order in the property management area.

When the property collects water and electricity charges, the invoice is issued as follows:

1. If the unit that collects water and electricity charges has not signed an agreement with the water and electricity supply unit to entrust the collection of water and electricity charges, it is regarded as selling water and electricity, and VAT is required. At this time, the unit that collects water and electricity charges must issue a VAT invoice to the owner;

2. If the water and electricity fee collecting unit signs a contract of entrustment and withholding with the water and electricity supply unit, the water and electricity fee collecting unit is only responsible for collecting and withholding the water and electricity fee at a fair price, and the water and electricity supply unit shall issue an invoice to the operator, and the water and electricity fee collecting unit does not need to issue an invoice.

To sum up, the tap water fee charged by taxpayers for providing property management services to clients is the sales after deducting the tap water fee paid by taxpayers, and VAT is calculated and paid at the rate of 3% according to the simple taxation method. At the same time, taxpayers can issue special VAT invoices to clients at the rate of 3%.

Legal basis:

Article 44 of the Regulations on Property Management

Within the property management area, water supply, power supply, gas supply, heating, communication, cable TV and other units shall charge relevant fees to the end users.

Where a realty service enterprise accepts the entrustment to collect the fees mentioned in the preceding paragraph, it shall not collect additional fees such as handling fees from the owners.