Q enterprises and institutions receive subsidies from the financial sector. Can they issue an invoice if the other party requests it? How to choose the project name and tax rate? Answer: The Announcement of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Cancelling the Time Limit for Certification and Confirmation of VAT Tax Deduction Certificates (State Taxation Administration of The People's Republic of China Announcement No.45, 20 19) stipulates that if the fiscal subsidy income obtained by taxpayers is directly linked to the income or quantity of goods, services, intangible assets and real estate, VAT shall be calculated and paid according to the regulations. The fiscal subsidy income obtained by taxpayers under other circumstances does not belong to the taxable income of value-added tax and is not subject to value-added tax.

According to the above provisions, if the financial allocation obtained by taxpayers is directly linked to the sales revenue or quantity, invoices can be issued at the applicable tax rate of sales revenue.

In addition, if the financial distribution received is not directly related to the sales revenue or quantity of the unit, an invoice can also be issued to the distribution unit.

The specific operation should pay attention to the tax classification code of goods and services in the upgraded invoice system of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China. "Tax-free items without sales behavior" at the beginning of 6 adds three tax-free codes, namely, 6 14, 6 15 and 6 16, in which the code 6 15 is the financial subsidy income that is not linked with sales behavior. In other words, select code 6 15 in the billing system to issue related invoices.

It should be noted that "non-taxable items without sales behavior" code is used, and "non-taxable" should be filled in the invoice tax rate column. Special VAT invoices cannot be issued, and only ordinary VAT invoices can be issued.