The financial king
We've recently had a foreign project. Are we paying vat in advance? I've just been on the job, and i'm not familiar with the circumstances and how
Tax claims
If your company provides construction services across counties (cities and districts), you are required to pay vat in advance at the place where construction services take place. Today, the tax is just a small comb of four cases requiring advance vat
Provision of construction services
1. Cross-county (city, district) provision of construction services
Construction services are provided across counties (municipalities and districts) by units and individual businesses, which pay an advance tax to the tax authorities in the place where the construction services took place, in accordance with the established tax methodology, and to the tax authorities in the place where the service took place。
N. B. From 1 january 2023 to 31 december 2027, small taxpayers who are required to pay vat taxes in accordance with the current provisions are not required to pay taxes in the current period if the monthly sales realized at the place of payment do not exceed $100,000. Where monthly sales of more than $100,000 are realized at the prepaid place, the 3 per cent advance value added tax (vat) is reduced by 1 per cent。
Tax claims
The provision does not apply to other individuals providing construction services across counties (municipalities, districts)。
2. Advance receipts for the provision of construction services
Taxpayers who provide construction services receive advance payment of vat upon receipt of advance payment。
Vat is paid in advance at the place where construction services take place in accordance with current provisions, at the place where the taxpayer receives the advance payment, at the place where construction services take place, and at the place where the advance payment is received in accordance with existing provisions, at the time of receipt of the advance payment, at the place of the institution。
Transfer of immovable property
Taxpayers (excluding other individuals) who transfer immovable property shall, in accordance with the established tax system, pay an advance tax to the competent tax authority in the place where the immovable property is located and file a tax claim with the competent tax authority in the place where the body is located。
Tax claims
The provisions do not apply to the sale by real estate developers of self-developed real estate projects。
Provision of real estate operating rental services
If the real estate is leased by the taxpayer on the basis of an operating lease, the taxpayer shall pay an advance tax to the competent tax authority of the place where the real estate is located and to the competent tax authority of the place where the real estate is located, if the real estate is located in the same county (city, district) as the place where the institution is located。
Tax claims
The provision does not apply to the provision of road traffic services by taxpayers。
Real estate development enterprise sales
Self-developed real estate projects
Ordinary taxpayers and small taxpayers in real estate development enterprises who sell their own real estate projects on the basis of advance receipts are subject to vat upon receipt of advance receipts。
The general taxpayer in a real estate development enterprise shall pay an advance tax to the competent tax authorities during the month following the tax filing period in which the advance payment is received; the small taxpayer shall pay an advance tax to the competent tax authorities during the month following the tax filing period in which the advance payment is received or the tax period approved by the competent tax authority。
