Multi-purpose prepaid card value-added tax
According to Article 4 of Announcement No.53 (20 16) of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC), the equivalent RMB funds obtained by the payment institution from selling multi-purpose cards or the recharge funds obtained by the multi-purpose card holders are not subject to VAT. Payment institutions may issue ordinary VAT invoices to card purchasers and rechargers in accordance with the provisions of Article 9 of this announcement, and may not issue special VAT invoices.
Cardholders use multi-purpose cards to buy goods or services at special merchants who have signed cooperation agreements with payment institutions. Special merchants shall pay VAT according to the current regulations, and shall not issue VAT invoices to cardholders.
Therefore, the card issuer does not pay value-added tax, and the merchants who actually provide consumer goods or services pay value-added tax. The invoice shall be issued by the card issuing institution with a non-taxable prepaid card.
Relevant regulations:
Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Several Issues Concerning the Collection and Management of the Pilot Project of the Reform of Business Tax (State Taxation Administration of The People's Republic of China Announcement No.53 20 16)
Four, payment institutions prepaid card (hereinafter referred to as "multi-purpose card") business in accordance with the following provisions:
(1) Value-added tax shall not be paid for the equivalent RMB funds obtained by the payment institution from the sale of multi-purpose cards or the recharge funds obtained by the holders of multi-purpose cards. Payment institutions may issue ordinary VAT invoices to card purchasers and rechargers in accordance with the provisions of Article 9 of this announcement, and may not issue special VAT invoices.
Payment institutions refer to card issuers that have obtained the Payment Business License issued by the People's Bank of China and are allowed to issue and accept prepaid cards, and acceptance institutions that are allowed to accept prepaid cards.
Multi-purpose card refers to the prepaid value of goods or services issued by card issuers in a specific carrier and form that can be purchased outside the card issuers.
(2) The payment institution shall pay the value-added tax in accordance with the existing regulations for the income such as handling fees, settlement fees, service fees and management fees obtained from issuing or accepting multi-purpose cards and handling related funds to pay settlement business.
(3) Cardholders use multi-purpose cards to purchase goods or services from special merchants who have signed cooperation agreements with payment institutions, and special merchants shall pay value-added tax in accordance with existing regulations, and shall not issue value-added tax invoices to cardholders.
(4) When the special merchants receive the sales payment settled by the payment institution, they shall issue an ordinary VAT invoice to the payment institution, and indicate in the remarks column that "the prepaid card settlement payment has been received", and shall not issue a special VAT invoice.
The general VAT invoice obtained by the payment institution from the special merchants shall be kept for future reference as a proof that the payment institution sells multi-purpose cards or accepts the recharge of multi-purpose cards to obtain advance payment without paying VAT.
Nine. The following contents are adjusted to the classification and coding in the appendix "Classification and Coding of Goods and Services Tax (Trial)" of the Announcement of State Taxation Administration of The People's Republic of China on Comprehensively Promoting the Pilot Project of Changing Business Tax to VAT (State Taxation Administration of The People's Republic of China Announcement No.2016 No.23). Taxpayers should upgrade the VAT fiscal invoicing software to the latest version (V2.0. 1 1):
(1 1) Six "non-taxable items without sales" are added, which are used when taxpayers collect money but do not sell goods, taxable services, intangible assets or real estate.
Under "non-taxable items", there are 60 1 "prepaid card sales and recharge", 602 "advance payment for self-developed real estate projects" and 603 "failure to make up invoices for business tax declaration and payment".
Using the code of "non-taxable items without sales behavior", the invoice tax rate column should be filled in "non-taxable", and special VAT invoices may not be issued.