How do property companies invoice and declare value-added tax when collecting water and electricity fees?

The Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on the Value-added Tax of Tap Water Fee for Property Management Services (State Taxation Administration of The People's Republic of China Announcement No.54, 20 16) stipulates that tap water fee charged by taxpayers for providing property management services to service recipients is regarded as sales, and VAT is calculated and paid at the rate of 3% according to the simple taxation method.

The implementation of special invoices for value-added tax is a key step of value-added tax reform. Different from ordinary invoices, it not only has the function of commercial documents, but also requires the buyer to pay the value-added tax to the seller by indicating the tax on the invoice. It has the function of tax payment voucher.

More importantly, the special VAT invoice links all the links of a product from the initial production to the final consumption, maintaining the integrity of the tax and reflecting the role of VAT.

Extended data:

The special VAT invoice is a commercial voucher. Because the tax is deducted from the purchase tax according to the invoice, the buyer has to pay the value-added tax to the seller, so it is also a tax payment certificate, which plays the role of legal proof of the seller's tax obligation and the buyer's input tax.

All the links of a commodity from initial production to final consumption can be connected through special VAT invoices. According to the tax amount indicated on the special invoice, each link is taxed and deducted, so that the tax is passed from the previous business link to the next business link until the goods or services are provided to the final consumers.

In this way, the sum of the tax payable indicated on the special VAT invoice issued by each link is the overall tax burden of the goods or services. Therefore, it embodies the characteristics of universal collection of value-added tax and fair tax burden

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