Does collecting water and electricity charges count as income? Do I have to pay taxes?

Does collecting water and electricity charges count as income? Do I have to pay taxes?

According to the Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Value-added Tax of Tap Water Fee for Property Management Services, the tap water fee charged by taxpayers for providing property management services to clients shall be subject to the sales after deducting the tap water fee paid by them, and the VAT shall be calculated and paid at the rate of 3% according to the simple tax calculation method. Therefore, your company can calculate and pay VAT according to the above provisions.

How to invoice for collecting water and electricity charges?

1. If the unit collecting water and electricity charges has not signed an agreement with the water and electricity supplier to entrust the collection of water and electricity charges, it will be regarded as selling water and electricity and paying VAT. At this time, the unit that collects water and electricity charges must issue a VAT invoice to the owner.

The unit that collects water and electricity charges is the general taxpayer of value-added tax. If the business owner requests to issue a special invoice for value-added tax, the unit that collects water and electricity charges shall issue a special invoice for value-added tax to the owner, and the value-added tax paid to the electric power bureau can also be deducted.

If the unit collecting water and electricity charges is a small-scale VAT taxpayer, the business owner may issue a special VAT invoice on behalf of the tax authorities.

2. The unit collecting water and electricity charges signs an entrustment contract with the water and electricity supply unit. If the unit collecting water and electricity charges is only responsible for collecting water and electricity charges at a fair price, the water and electricity supply unit shall issue an invoice to the business owner. Units that collect utilities do not need to issue invoices.

Does collecting water and electricity charges count as income? Do I have to pay taxes?