Unit 4 BT to VAT Reform to China 財(cái)經(jīng)專業(yè)英語教程（第四版）課件

Unit4BTtoVATReformtoChina財(cái)經(jīng)專業(yè)英語教程（第四版）課件ChinaannouncesextensionoftheBT/VATreformtoalloverthecountry

[Para1]Startingfrom1January2012,Chinahaslaunchedapilotbusinesstax(“BT”)/valueaddedtax(“VAT”)reformwithShanghaiasthefirstpilotarea.ThepurposeofsuchreformistoshiftcertaintypesofservicesfromtheBTsystemtotheVATsystem.ThemaindifferencebetweenthetwotaxsystemsisthattheVATsystemhasaninput-outputcreditmechanismwhiletheBTsystemdoesnot.ThismeansthatBTisgenerallynotrecoverablewhileVATis.Overthepastyear,theBT/VATreformhasbeengraduallyextendedtomoreregionssuchasBeijing,Tianjin,AnhuiProvince,ZhejiangProvince,FujianProvince,HubeiProvinceandGuangdongProvince.[Para2]On27May2013,thePRCMinistryofFinance(“MoF”)andtheStateAdministrationofTaxation(“SAT”)issuedtheTaxCircularCaishui[2013]No.37(“Circular37”)toextendtheBT/VATreformtoalloverthecountrystartingfrom1August2013.ThisTaxCircularincorporatesandreplacesthepastcircularsissuedforthepurposeofthepilotreformandalsobringssomeadditionalamendments.ScopeofservicesshiftedfromBTtoVAT

UndertheoriginalpilotBT/VATreform,VATtaxableservicesincludedtransportationservices,R&Dandtechnologyservices,ITservices,designservices,transferoftrademark,goodwillandcopyrights,intellectualpropertyrelatedservices,advertisement,conferenceandexhibitionservices,logistics-relatedservices,leaseofmovabletangibleassetsaswellascertification,authenticationandconsultingservices(“TaxableServices”).

[Para4]Circular37furtheradded“radio,filmandtelevisionservices”totheabovescopeofTaxableServices.Suchservicesincludeproducing,releasingandbroadcastingofradio,filmandtelevisionprogramsorworks.

[Para5]Startingfrom1August2013,allTaxableServicesprovidedbyorprovidedtotaxpayerslocatedinChinashallbesubjecttoVATandnolongerBT.

[Para6]Inpractice,itisnotunusualthatdisputesarisebetweentaxpayersandtaxauthoritiesregardingtheapplicabilityofBT/VATtospecificservices.E.g.insomecases,itisunclearwhethercertainservicesqualifyas“consultingservices”forBT/VATpurposes,Iftheservicesareindeed“consultingservices”,VATshallapply,otherwiseBTwillapply.Toavoiduncertaintiesandrisks,itisadvisablefortaxpayerstodiscussinadvancewiththecompetentChinesetaxauthorityonwhetherBTorVATwillapplytospecificservices.Small-scaleVATpayers,generalVATpayersandapplicabletaxrates

[Para7]AgeneralVATpayercanissueVATinvoicesandcredititsinputVATagainstitsoutputVAT.TheapplicableVATratesforcalculatingoutputVATofTaxableServicesareasfollows:

17%forleaseofmovabletangibleassets;

11%fortransportationservices;and

6%forotherTaxableServices

[Para8]Asmall-scaleVATpayershallpayVATat3%onthegrossamountforitsTaxableServicesandisnotabletocreditanyinputVAT.Asmall-scaleVATpayeralsocannotissueVATinvoicesbyitself,butcanaskthetaxauthoritytoissueVATinvoicesforit.

[Para9]AtaxpayerprovidingTaxableServiceswithanannualtransactionvalueofaboveRMB5millionisrequiredtoapplyforthegeneralVATpayerstatus.Small-scaleenterpriseswithatransactionvaluebelowthisthresholdcanalsobecomegeneralVATpayeruponapplication,iftheykeepproperaccountingrecords.

ExportationofTaxableServices

[Para10]VATat0%appliesforinternationaltransportationservices,R&Dservicesanddesignservicesprovidedtoforeigncustomers.

[Para11]Toachievetheeffectof0%taxratefortheaboveTaxableServices,Circular37providestheapplicableVATtreatmentsfordifferenttypesofVATpayers.

[Para12]Sameasinthepilotreform,Circular37alsoprovidesforVATexemptionforexportationofcertainTaxableServices,e.g.consultingservices.However,Circular37doesnotprovideguidanceontheproceduralanddocumentrequirementsforenjoyingsuchVATexemption.Inpractice,somepilotareataxauthoritiesarestillrequestingVATpaymentforexportationofTaxableServiceswhichshouldbeexemptedfromVAT.Soalsointhiscaseitisrecommendablefortaxpayerstocheckinadvancewiththecompetenttaxauthorityaboutitspractice.VAT

payablebyforeigntaxpayers

[Para13]ForeigntaxpayersprovidingTaxableServicestotheirChinesecustomersarealsosubjecttoVAT.Insuchcase,theChinesecustomersshallnormallyactasthetaxwithholdingagent.SuchVATpaidbytheforeigntaxpayerscanberecoveredbytheChinesecustomersbycreditingasinputVATagainsttheiroutputVAT,providedthattheyaregeneralVATpayers.Therefore,itiscommerciallyreasonableforforeigntaxpayerstochargetherelevantVATcoststotheirChinesecustomers.InputVATcreditabilityforpurchaseofmotorcycles,carsandyachtsforself-use

[Para14]UnderthecurrentVATsystem,ifataxpayerpurchasesmotorcycles,carsandyachtsforself-use,theinputVATrelatedtosuchpurchaseisnotcreditable.Startingfrom1August2013,suchVATwillbecreditableforgeneralVATpayers.Thiswilleffectivelyreducetheirpurchasecosts.

[Para15]Circular37doesnotprovideanytransitionalarrangementsforoldcontractsconcludedbefore1August2013.i.e.generallyspeaking,BT/VATapplicabilityshallbeassessedbasedonthedatewhenthetaxpaymentliabilitiesarise.Ifthetaxpaymentliabilitiesariseafter1August2013,thenewrulesshallapply,eventhoughtherelevantcontractshavealreadybeenconcludedbefore1August2013.

[Para16]However,asanexception,outstandingcontractsforleaseofmovabletangibleassetsconcludedbefore1August2013continuetobecoveredbytheBTsystemuntiltheterminationofsuchcontracts.

[Para17]Sameasunderthepilotreform,Circular37alsocoversvariousothertopicssuchasmixedsales,consolidatedVATdeclaration,deemedsalesofTaxableServices,conditionsforcreditableinputVAT,non-creditableinputVAT,consequenceofnotapplyingforthegeneralVATpayerstatus,exchangerate,timingofVATliability,taxdeclarationdeadline,taxpaymentlocation,valuethresholdforindividuals,issuanceofVATinvoices,andadetailedexplanationofthescopeofTaxableServices,etc.CMSsuggestions

[Para18]ItisadvisableforChinesetaxpayersaffectedbyCircular37topreparethemselvesforthenewVATregimeandstartdiscussingwiththeirtaxauthoritiesregardingBT/VATapplicabilityontheirbusinessandprepareforthegeneralVATpayerstatus(wherepossible);

[Para19]Commercialwise,itisimportanttomakeanin-depthanalysisofthechangesinthetaxburdenbroughtbyCircular37toadjustpricingwherenecessaryandtorestructurebusinessmodelswhereadvisable;

[Para20]ForeigncompaniesprovidingTaxableServicestocustomersinChinashallalsotaketheBT/VATissueintoconsiderationwhenconcludingtherelevantcontracts.Inparticular,therelevanttaxclausesmayneedtobechangedinviewoftheBT/VATreform.1.ThemaindifferencebetweenthetwotaxsystemsisthattheVATsystemhasaninput-outputcreditmechanismwhiletheBTsystemdoesnot.句中的input-outputcreditmechanism是指增值稅體系進(jìn)項(xiàng)和銷項(xiàng)可以抵扣機(jī)制，而營業(yè)稅體系是沒有這個(gè)機(jī)制的。2.theTaxCircularCaishui[2013]No.37(“Circular37”)是指財(cái)政部和國家稅務(wù)總局共同簽發(fā)的2013財(cái)稅第37號(hào)通知或規(guī)定，circular作名詞可指aletteroradvertisementwhichisdistributedtoalargenumberofpeople，即“通告”，“通知”等義。3.ThisTaxCircularincorporatesandreplacesthepastcircularsissuedforthepurposeofthepilotreformandalsobringssomeadditionalamendments.合并替代以前營改增試點(diǎn)的通知，即以前的通知作廢，一切以這個(gè)通知為準(zhǔn)。4.營改增的服務(wù)行業(yè)范圍段中使用長短語表示的行業(yè)有：transferoftrademark,goodwillandcopyrights（商標(biāo)，信譽(yù)和版權(quán)的轉(zhuǎn)讓服務(wù)），intellectualpropertyrelatedservices（與知識(shí)產(chǎn)權(quán)相關(guān)的服務(wù)），advertisement,conferenceandexhibitionservices（廣告，會(huì)議和展覽服務(wù)），logistics-relatedservices（物流相關(guān)服務(wù)），leaseofmovabletangibleassets（有形動(dòng)產(chǎn)租賃），certification,authenticationandconsultingservices（證書認(rèn)證和咨詢服務(wù)）等。5.besubjecttoVATandnolongerBT.交增值稅，不再交營業(yè)稅。6.disputesarisebetweentaxpayersandtaxauthoritiesregardingtheapplicabilityofBT/VATtospecificservices.本句中的主語和謂語動(dòng)詞是disputesarise，主語disputes有兩個(gè)后置的介詞短語between和regarding作為其修飾語，為避免frontweight(頭重）而挪至后邊。譯文可以是：納稅人和征稅當(dāng)局就營改增是否適用于某一些特定的服務(wù)行業(yè)會(huì)發(fā)生爭執(zhí)。7.qualify可以作vi.，如qualifyasadoctor（取得醫(yī)生資格），qualifyas“consultingservices”（屬于咨詢服務(wù)）8.AgeneralVATpayercanissueVATinvoicesandcredititsinputVATagainstitsoutputVAT.一般增值稅納稅人能夠開具增值稅專用發(fā)票，出項(xiàng)增值稅和進(jìn)項(xiàng)增值稅可以抵扣。9.Asmall-scaleVATpayershallpayVATat3%onthegrossamountforitsTaxableServicesandisnotabletocreditanyinputVAT.小規(guī)模增值稅納稅人支付應(yīng)稅總額的3%，不能抵消任何進(jìn)項(xiàng)增值稅。10.Circular37providestheapplicableVAT