Do You Know How To Issue Invoices For The Pfer Of Old Fixed Assets?

Q: our company is a general taxpayer and belongs to industrial enterprises.

Purchase of old fixed assets from other units, the other party issued 2% value-added tax.

Due to technical reasons, our company failed to install and use the equipment.

Now sell the old equipment to customers, the customers are general taxpayers.

Does our company sell the batch of equipment, is it issued 17% VAT invoices according to the general sale of goods, or does it issue 2% VAT regular invoices according to the second-hand goods handling?

Answer: according to the Circular of the Ministry of Finance and the State Administration of Taxation on the application of value-added tax policies for low value-added tax and simple measures for some goods, (fiscal 2009 [9]), the term "second-hand goods" refers to goods with some value in use (including old cars, old motorcycles and old yachts) that have entered the two circulation, but do not include the goods that they have used.

According to the state

Simple about VAT

The notice on management issues (National Tax Letter No. 2009 [90]) stipulates that taxpayers selling second-hand goods should issue ordinary invoices, not to issue them on their own, or to make VAT invoices on behalf of tax authorities.

According to the first provision of the Ministry of Finance and the State Administration of Taxation on the policy of levying the value added tax rate (fiscal 2014 [57]), the Ministry of Finance and the State Administration of Taxation on the application of a low value-added tax and a simple method of levying a value-added tax policy on certain goods (fiscal 9 [2009] 9), in the second items (1) and (two), shall be reduced to half the value added tax in accordance with the 4% levy rate according to the simplified method.

Therefore, if you pfer the above old fixed assets equipment to the sale of second-hand goods, you can reduce the value added tax by 2% according to the simple method and issue the general invoice according to the 3% levy rate.

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In order to rationally choose the distribution base and allocate the indirect cost correctly, the following principles should be followed:

(1) the principle of causation means that the use of resources leads to costs, and there is a causal relationship between them. Therefore, the cost should be shared among the objects according to the number of resources used.

According to this principle, we must determine the amount of resources used by each object, such as consumed materials, working hours, etc., and share indirect costs according to the proportion of resources used.

(2) the principle of benefit refers to "who benefits more and who pays more costs" should share the indirect cost according to the benefit ratio.

According to this principle, managers should determine the beneficiaries of indirect costs, such as the cost of workshop and house maintenance, and the allocation of advertising fees according to the sales volume of various products.

The principle of causation is to look at the cause. The principle of benefiting is to see the consequences, and there are differences between them.

(3) the principle of equity refers to the fair distribution of costs to both parties involved.

When determining the external selling price and the internal pfer price according to the cost, reasonable cost is the basis of reasonable price. Therefore, when calculating the cost, the buyers and sellers should be fair and reasonable.

Fairness is an abstract concept and is not operable.

Therefore, in practice, government norms or authoritative standards become the specific yardstick of fairness.