What is the billing item of public utility resale?

What are the billing items for the resale of public utilities?

The general taxpayer rents out the property to other general taxpayers for use, and the tap water fee charged by the lessor to the lessor can be invoiced and paid temporarily according to No.54 of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.2016. According to the relevant regulations, the tap water fee charged by taxpayers to provide property management services to clients is the sales after deducting the tap water fee paid by them, and the value-added tax is calculated and paid at the rate of 3% according to the simple taxation method.

How to issue resale electricity invoice;

The resale of public utilities is a very common phenomenon. Usually involving property companies, tax treatment is more complicated, such as how to invoice, how to share, and how to apply the tax rate. If the taxpayer meets the following conditions in the process of collecting water and electricity charges on behalf of the hydropower sales unit, the fees charged by the taxpayer belong to the act of withholding, and the fees charged on behalf of the taxpayer do not belong to their taxable income. The entrusted charging unit does not advance funds; Hydropower sales units directly issue VAT invoices to end customers, or entrust taxpayers to issue VAT invoices to end customers using sales units' invoices. If the above conditions for collection and payment cannot be met at the same time, the collection of water and electricity fees shall be treated as resale of goods. In practice, it is basically impossible for a property company to collect and transfer ownership, which is not feasible and is basically handled as resale. First of all, it is clear that the VAT rate of water is 9% and that of electricity is 13%.

To sum up, all units and individuals engaged in production and business activities should ask the payee for invoices when purchasing goods, receiving services and paying for other business activities. When obtaining the invoice, you are not allowed to change the name and amount.

Legal basis:

"People's Republic of China (PRC) invoice management measures" nineteenth.

Units and individuals that sell goods, provide services and engage in other business activities collect money from foreign operations, and the payee shall issue invoices to the payer; Under special circumstances, the payer will issue an invoice to the payee.

Article 20

All units and individuals engaged in production and business activities shall ask the payee for invoices when purchasing goods, receiving services and paying other business expenses. When obtaining the invoice, you are not allowed to change the name and amount.

Article 21

Invoices that do not meet the requirements shall not be used as financial reimbursement vouchers, and any unit or individual has the right to refuse them.