Is it necessary to pay VAT to collect electricity from tenants?

When an enterprise rents a house to other enterprises for production and operation, the lessor provides water, electricity, etc. And settle the price with the lessee according to the actual use. The sales amount of water and electricity shall be calculated and paid in full according to the sales amount and the applicable tax rate. When selling their own tap water, ordinary taxpayers can choose to calculate and pay the value-added tax at the rate of 3% according to the simple method, while resale is not an asset tap water, so they cannot choose the simple tax calculation method. The applicable tax rate for tap water resale is 13%. The water supply company and the power supply bureau can issue special invoices for value-added tax to the property company as the input deduction of the lessor.

The lessor can handle the issue of issuing special invoices in the following ways: when both the lessor and the lessee are general taxpayers of value-added tax, the lessor can issue special invoices for value-added tax according to the settlement price of water and electricity actually consumed by the lessee. The lessee can calculate the input tax deduction accordingly. When the lessor is a small-scale taxpayer and the lessee is a general taxpayer of value-added tax, the lessor may apply to the competent tax authorities, and the tax authorities will settle the price according to the actual consumption of water and electricity by the lessee.