The decoration company needs to file tax returns after receiving the down payment.

after may 1, 2118, the general taxpayer's value-added tax rate in the decoration industry is 11% (before may 1, 2118, it was 11%), and the small-scale taxpayer is subject to the 3% levy rate. Issues needing attention in tax-related decoration industry

The time of income recognition according to accounting standards is inconsistent with the time of value-added tax obligation recognition.

the time when the obligation to pay value-added tax occurs:

(1) Received sales money refers to the money received by taxpayers during or after the provision of construction services.

(2) The date when the sales voucher is obtained is the payment date agreed in the written contract.

(3) the time of issuing the invoice.

according to the principle of the earlier of the three, the value-added tax obligation is confirmed, so the enterprise should pay attention to avoid the misunderstanding that the tax increase is paid only after the income is confirmed. As long as the above-mentioned time for confirming the value-added tax obligation is met, the enterprise still has to confirm the payment of value-added tax, otherwise it may be punished for failing to declare and pay the value-added tax on time, and at the same time, it will be charged with tax late fees and fines.

Calculation of VAT payable of small-scale taxpayers in decoration industry:

VAT payable = (total price and out-of-pocket expenses-subcontracting payment) /(1+3%)×3%. Small-scale taxpayers provide construction services across counties and cities, and the balance of the total price and out-of-pocket expenses minus subcontracting payment is paid in advance at the project location at the rate of 3%. VAT payable in advance = (all)

when returning to the place where the institution is located, the value-added tax shall be declared at 3%, and the value-added tax payable in advance shall be = (total price and out-of-pocket expenses-subcontracted payment) /(1+3%)*3%- in advance. If a small-scale taxpayer provides construction services across counties (cities, districts) and cannot issue a value-added tax invoice by himself, he may apply to the competent national tax authorities in the place where the construction services occur for issuing a value-added tax invoice on his behalf according to the total price and out-of-pocket expenses obtained by him.