Do property companies need to pay taxes when they receive water and electricity invoices?

If the unit collecting 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 shall be regarded as the sale of water and electricity, and value-added tax shall be paid. At this time, the unit that collects water and electricity charges must issue a VAT invoice to the owner. There are two situations:

(1) The unit that collects utilities is the general VAT taxpayer. Where an enterprise owner requests to issue a special VAT invoice, the unit that collects the water and electricity fee shall issue a special VAT invoice to the owner, and can also deduct the VAT paid to the electric power bureau.

(2) The unit that collects utilities is the small-scale VAT taxpayer. If the business owner asks for a special VAT invoice, he can issue it at the tax authorities.

Value-added tax is a turnover tax based on the value-added amount of goods (including taxable services) generated in the circulation process. From the tax principle, value-added tax is a turnover tax levied on the added value of many links such as commodity production, circulation and labor services or the added value of commodities. Extra-price tax is implemented, that is, it is borne by consumers, and tax is levied only if there is value added, and tax is not levied if there is no value added.

Legal basis:

Provisional Regulations of People's Republic of China (PRC) Municipality on Value-added Tax

Article 1 Units and individuals selling goods or processing, repair and replacement services (hereinafter referred to as services), services, intangible assets, real estate and imported goods within the territory of People's Republic of China (PRC) are VAT taxpayers and shall pay VAT in accordance with these Regulations.