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The company is mainly engaged in elevator sales and installation. Is it necessary to pay business tax?

Answer: According to the Official Reply of State Taxation Administration of The People's Republic of China on Taxation of Elevator Maintenance Income (Guo [1998] No.390), elevators belong to the scope of VAT taxable goods, but after installation and operation, they form real estate with buildings. Therefore, value-added tax will be levied on the income obtained by enterprises from selling elevators (self-produced or outsourced) and being responsible for installation, maintenance and repair. Therefore, the income obtained by enterprises from selling elevators and being responsible for installation belongs to mixed sales behavior, and should pay value-added tax instead of business tax.