What if government subsidies require enterprises to invoice?

Whether the government subsidies obtained by the enterprise are directly linked to the income or quantity of commodities, services, intangible assets and real estate, and if the appropriation department asks for invoices, it shall issue them.

Let's explain the following two questions in detail. First, whether government subsidies pay value-added tax; Second, how to invoice. Because whether to pay value-added tax directly affects the way invoices are issued.

The answer to the question "whether to pay value-added tax after receiving government subsidies" is clear, that is, "some pay and some don't" ~ specifically, there are the following provisions in Announcement No.45 of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC):

If the taxpayer's financial subsidy income is directly linked to the income or quantity of goods, labor services, services, intangible assets and real estate, the value-added tax shall be calculated and paid in accordance with the provisions. 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.

For the understanding of this sentence, the official account of WeChat stated in his "Forwarding and Interpretation of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.2019 No.45", so I won't go into details. For example, the "job security subsidy" received by many enterprises this year is not directly related to the "income or quantity of goods, services, intangible assets and real estate", so value-added tax will not be levied. For example, if subsidies for new energy vehicles, wind power and home appliances are directly linked to "income or quantity of goods, services, intangible assets and real estate", value-added tax will be levied.

After the question of whether to pay taxes, let's talk about whether to issue invoices and how to issue them.

First of all, let's "throw away" the invoice management method for the time being, because the following operations do not strictly meet the requirements of the invoice management method. However, the revision of laws and regulations has a certain lag, and the following operations are also in line with the current practical provisions of the State Administration of Taxation. Please feel free to handle them.

If it belongs to the above-mentioned government subsidies that need to be subject to value-added tax and belongs to the taxable behavior of value-added tax, then there is naturally no problem in issuing invoices. When a fund disbursement unit requests an invoice, it can directly select the corresponding tax classification code according to the corresponding sales items, and issue an ordinary VAT invoice according to the billing information provided by the disbursement party. Fill in the specific project name (i.e. "commodity or service, service name"), specifications and models, buyer information and remarks according to the requirements of the fund disbursement department, and there will be no screenshot demonstration.

If the government subsidy income obtained by an enterprise has nothing to do with the "income or quantity of selling goods, services, intangible assets and real estate", value-added tax will not be levied. Then, if the fund disbursement department asks for an invoice, can it be issued? How should I drive it? The answer is yes. Some parents also reported that sometimes the financial department will send some "model" photos to enterprises out of kindness, that is, invoices issued by other enterprises for enterprises to follow suit. However, I see that sometimes these "templates" are not standardized. After all, the financial department usually has no access to billing software and tax policies. People only value regular invoices, so some wrong invoices are not a problem for them. So what is the compilation method of this "non-tax government subsidy" invoice specification? Let's take a look together.

The absence of VAT does not mean that invoices cannot be issued. As the tax classification code is added to the billing software, the official has given a category in the tax classification code, which is called "non-taxable items without sales behavior" (in the red box below), and its low code starts with 6, which is currently 3 digits.

The "tax classification code" has been updated many times, and now there are as many as 16 such codes, among which the fifteenth code, numbered 6 15, is "financial subsidy income unrelated to sales behavior". I don't need to explain such a straightforward name. Obviously, it was chosen when the fund disbursement department asked for an invoice after receiving the financial subsidy without VAT ~

If you open the software and find that the code is only before 6 14, but not before 6 15, then you should click the "Update" button at the top of the tax classification coding interface (in the red box below) to update the new code (many parents report that the software does not update itself in time).

The tax classification code will be selected, so I don't need to say more about other operations. Add a new commodity code by yourself. It will follow other people's names if required by the fund distributor. If there is no requirement, the tax classification code will be used by default. The tax classification code must be 6 15, and the tax rate shows "No Tax" by default, so don't change the 0% tax rate or tax exemption by yourself. Fill in the buyer's information, amount, comments, etc. According to the requirements of the donor, print it out again. Refer to the figure below.