tax regulations on prepaid card business

nowadays, prepaid cards have become the mainstream consumption mode in many industries, from beauty salons, fitness, catering, car washing to chain fruit shops, etc. For consumers, cash transactions in the shopping process can be reduced when spending, and discounts can be enjoyed. For businesses, it can not only withdraw funds quickly, reduce business risks, but also "Qian Shengqian". There is a lot to know about prepaid cards. Let's talk to you today.

Introduction 1. Where did the VAT on prepaid cards go? 2. Prepaid card types and business combing; 3. Supplementary special business (refined oil, ETC).

course value through the study of this course, I hope to help you understand the handling methods of various parties in prepaid card business; Clarify the value-added tax chain relationship of prepaid card business; Clarify the invoicing logic of prepaid card business.

1. Where is the VAT on prepaid cards? The original intention of No.53 document of the State Administration of Taxation [2116] is that the downstream of the prepaid card is the final consumer by default. Then the value-added tax chain is broken at the end consumer, so there is no problem.

Policy basis: Article 3 of State Taxation Administration of The People's Republic of China Announcement No.53 (2116) "Announcement of State Taxation Administration of The People's Republic of China on Several Issues Concerning the Administration of the Pilot Project of VAT Reform" (hereinafter referred to as document No.53 [2116] of Tax Administration) stipulates that when purchasing goods (services) with a single-purpose prepaid card, the card issuing enterprise or the card selling enterprise shall not issue special VAT invoices to the card purchaser and the recharge person, but only ordinary VAT invoices. When a cardholder uses a single-purpose card to purchase goods or services, the seller of the goods or services shall pay VAT in accordance with the existing regulations, and shall not issue VAT invoices to the cardholder. Tax Administration [2116] No.53 also defines a single-use card, which refers to a prepaid voucher issued by a card-issuing enterprise in accordance with the relevant provisions of the state and limited to the payment of goods or services within the enterprise, the group to which the enterprise belongs or the franchise system of the same brand.

policy interpretation: from this clause, the "card purchasers and rechargers" here should include general taxpayers, small-scale taxpayers and individuals. Does that mean that in the future, if ordinary taxpayers purchase related goods or services in the form of "prepaid cards", they are not allowed to ask for special VAT invoices? The upper-class enterprises paid the output tax, but there was no deduction from the lower-class enterprises. Is there a break in the VAT chain? Actually, it is not. In order to illustrate this problem, let's first analyze State Taxation Administration of The People's Republic of China Announcement No.53, 2116, why it is stipulated that prepaid cards cannot be used to purchase goods and services with special VAT invoices.

opinion: judging from the operation process of single-use prepaid cards, the purchasers and rechargers may be the final consumers, and it is stipulated in Guo Shui Fa [1993] No.151 that special VAT invoices may not be issued, including: 1 selling taxable items to consumers. 2 The card purchaser and the recharge person (payer) and the purchaser (drawee) of the actual goods or services may not be the same party, especially in the group to which the enterprise belongs or the franchise system of the same brand. The Notice of State Taxation Administration of The People's Republic of China on Strengthening the Administration of Value-added Tax Collection (Guo Shui Fa [1995] No.192) stipulates that taxpayers who purchase goods or taxable services and pay transportation expenses must be consistent with the sales unit and the service provider who issue the deduction certificate before they can declare the deduction of input tax, otherwise it will not be deducted. From the above, we can see that the original intention of the No.53 document of the National Tax Announcement [2116] is that the downstream of the prepaid card is the final consumer by default. Then the value-added tax chain is broken at the end consumer, so there is no problem. So smart, you must have found that the single-use prepaid cards on the market at present can be divided into registered cards and bearer cards. Registered cards are mainly vouchers issued by specific units to enjoy certain benefits. In view of this, if the purchaser of registered prepaid cards is the purchaser of actual goods and services, and the purchaser is a general taxpayer, and the card-issuing enterprise and the goods and services sales enterprise are the same party, then it is unfair not to issue special VAT invoices, which is not the original intention of No.53 document of the State Administration of Taxation [2116]. Therefore, in order to prevent this from happening, a special VAT invoice can be issued when the following conditions are met at the same time. 1. The card purchaser or recharger is a general taxpayer enterprise; 2. The card purchaser or recharger pays the advance payment (registered card) to the card selling enterprise in a non-cash way; 3. The end users of prepaid cards are the original card purchaser and the recharger; 4. The card purchaser or recharger purchases goods or services from the original card selling enterprise; 5. The card seller and the seller of goods and services are the same general taxpayer enterprise; 6. The card seller shall not issue an invoice to the card purchaser and the top-up person in the card selling process, but shall issue an invoice in the purchasing (sales) process of the card purchaser and the top-up person. This article is to ensure that the invoicing complies with Article 38 (4) of the Detailed Rules for the Implementation of the Provisional Regulations on Value-added Tax. When goods are sold in advance, it is the day when the goods are issued. To sum up, you will find that only when it is clear that it is a prepaid behavior for the public, and a special ticket can be issued, specifically like the recharge of oil cards.

2. Types of prepaid cards and business arrangement 1: Single-use commercial prepaid cards (hereinafter referred to as single-use cards). Definition: It is limited to the payment of goods or services within the enterprise, the group to which this unit belongs or the franchise system of the same brand. (Simply put, a single-purpose commercial prepaid card is a bond certificate that is recharged first and then consumed. It is a general term for stored-value cards, membership cards, consumer cards, integral cards, smart cards, discount cards and other cards. It is divided into two forms: entity and virtual; Physical forms include chip cards, magnetic stripe cards, paper coupons, etc. Virtual forms include all kinds of electronic stored value cards, members, discount card coupons, etc. issued through WeChat card package function, such as shopping cards in supermarkets, prepaid cards of various commercial entities, etc.).

1. When the card seller and the seller are not the same taxpayer: the card issuing enterprise or the card selling enterprise (the card seller), the cardholder and the seller

2. When the card seller and the seller are the same taxpayer

Case 2: Multi-purpose prepaid card sales (the general environmental trend restricts the abandonment of multi-purpose prepaid cards, so I won't go into details here) Policy basis: "Announcement of State Taxation Administration of The People's Republic of China on Several Issues Concerning the Collection and Management of the Pilot Reform of Business" Multi-purpose card refers to the prepaid value of goods or services issued by a card issuer in a specific carrier and form and can be purchased outside the card issuer. Involved parties: qualified payment institutions (card sellers), special merchants (sellers) providing goods or services, and cardholders. The tax payment points are the same as billing and single-use cards, but the subject name is different. The payment institution-card seller, special merchant-seller.

III. Supplementary special business (refined oil, ETC) matters

1. Policy basis for the sale of prepaid cards for refined oil products: Administrative Measures for the Collection of Value-added Tax at Retail Gas Stations of refined oil products (State Taxation Administration of The People's Republic of China Order No.2) 1 The card seller may issue an ordinary invoice when selling fuel cards or fuel vouchers; If the oil purchasing unit requires to issue a special VAT invoice, the user will issue a special VAT invoice to the oil purchasing unit according to the return record of the fuel card or fuel voucher after refueling with the card or fuel voucher. The oil seller who accepts the fuel card or fuel voucher sells the refined oil by collecting the fuel voucher (book) or fuel card, and shall not issue a special VAT invoice to the user. Issue a special VAT invoice to the pre-sale unit according to the actual oil payment. When purchasing prepaid cards, the units that purchase prepaid cards can only obtain the general VAT invoice from the card selling units, and the invoice is marked with the words "* prepaid card sales * fuel card recharge". Once the invoice is requested, the general VAT invoice or special VAT invoice will not be obtained after the actual refueling consumption. Note that there is no "refined oil" on the invoice. If you don't get the ordinary invoice for prepaid card recharge when purchasing prepaid card, you can issue a special VAT invoice or ordinary invoice to the oil purchasing unit according to the record of returning the fuel card or fuel voucher from the prepaid card selling unit after the actual fuel consumption. Note that the invoice has the words "refined oil" in the upper left corner.

2. Policy basis for prepaid and prepaid sales of ETC: Announcement of State Taxation Administration of The People's Republic of China of the Ministry of Transport on Issuing Toll Road Toll Value-added Tax Electronic Ordinary Invoice (Announcement No.66 of the Ministry of Transport, 2117) 1 Toll Electronic Invoice Category 1) is marked with the word "Toll" in the upper left corner, and the toll electronic invoice (hereinafter referred to as tax invoice) with applicable tax rate or collection rate is displayed in the tax rate column. 2) Toll electronic invoice (hereinafter referred to as non-taxable invoice) with the words "Toll" in the upper left corner and "No Tax" displayed in the tax rate column. 2ETC prepaid prepaid prepaid sales 1) If you ask for an invoice after recharging, you will get a non-taxable invoice issued in full by ETC customer service organization on the invoice service platform. After the actual toll, ETC customer service organization and toll road management unit will no longer issue an invoice to it. 2) If the customer does not ask for the non-taxable invoice after recharging, but asks for the invoice after the actual toll, he can obtain the tax invoice issued by the toll road management unit on the invoice service platform through the part of the operating toll road; Through the part of the government repayment toll road, the tax-free invoice temporarily issued by ETC customer service agency is obtained on the invoice service platform.

summary after class 1. Whether the prepaid card business can issue special tickets is mainly to prove that the card purchaser or recharger is not the final consumer, and to ensure that the special VAT invoice can not be issued in accordance with the provisions of document No.151 of the State Administration of Taxation [1993], including: selling taxable items to consumers. At the same time, it can be proved that the drawer conforms to the Notice of State Taxation Administration of The People's Republic of China on Strengthening the Administration of Value-added Tax Collection No.1992 [1995], that is, the "three-in-one", that is, the flow of goods, services and taxable services, the flow of funds and the flow of invoices must all be the same payee. 2. According to State Taxation Administration of The People's Republic of China Announcement No.28, 2118, the "receipt of payment" for ordinary invoices cannot be deducted before the current enterprise income tax when the business has not actually happened.