1. VAT Prepayment Form (2 copies)

2. Taxpayers who provide cross-county (city, district) construction services need to provide:

• One photocopy of the construction contract signed with the contract-issuing party (with the official seal of the taxpayer).

• One photocopy of the subcontract signed with the subcontractor (with the official seal of the taxpayer).

• One photocopy of the invoice (with official seal of the taxpayer) obtained from the subcontractor.

1. Office hours

Immediate processing

2. Locations

1. Tax Service Hall (venue)

For the address of the Tax Service Hall of each district (region), please refer to the taxation map:

http://beijing.chinatax.gov.cn/bjsat/mapNew/mapNew.html

2. Beijing Electronic Tax Bureau

https://etax.beijing.chinatax.gov.cn/xxmh/html/index.html

3. Fees

Free of charge

4. Processing agencies

Competent tax authorities

1. All materials shall be stamped with the official seal of the taxpayer.

2. The documents and forms can be found and downloaded in the “Download Center” section of the website of tax bureaus of provinces (autonomous regions, municipalities directly under the central government and municipalities with independent planning authority) or collected from the tax service halls.

3. Electronic signatures used by taxpayers that meet the conditions stipulated in the Electronic Signature Law shall have the same legal effect as handwritten signatures or seals.

4. If any document provided by the taxpayer is a copy, it must be marked with “consistent with the original” and signed or stamped.

5. Taxpayers should fill in the taxpayer identification number of the registered place when using the VAT Prepayment Form to prepay taxes in other localities.

6. Failure to fulfill the tax declaration procedures and submit tax materials within the prescribed time limit will affect the results of tax credit evaluation, and the taxpayers in question shall bear corresponding legal responsibilities in accordance with the relevant provisions of the Law of the People's Republic of China on the Administration of Tax Collection.

7. When taxpayers (excluding other individuals) provide cross-county (city) construction services:

(1) The VAT prepaid to the competent tax authority where the construction service takes place can offset the tax amount payable of VAT in the current period. The remaining amount, if any, will be carried over to the next period for further offset. Taxpayers shall use tax payment documentations as the legal and valid vouchers to offset the tax amount payable.

(2) Small-scale taxpayers who cannot issue VAT invoices by themselves may apply to the competent tax authorities of the place where construction services take place for issuing VAT invoices on their behalf based on the sum of the total contract cost and  additional fees and charges they have received.

8. When taxpayers (excluding other individuals) lease out real estate that is not located in the same county (city) as their institution:

(1) The tax shall be prepaid during the tax assessable period of the month following the rental collection month or during the tax assessable period verified and determined by the competent tax authority where the real estate is located.

(2) If a taxpayer collects advance payment for rental services provided, the time that the tax obligation arises shall be the day when it receives the advance payment.

(3) The VAT prepaid to the competent tax authority of the locality where the real estate is located can offset VAT payable in the current period. The remaining amount, if any, will be carried over to the next period for further offset. Taxpayers shall use tax payment documentations as the legal and valid vouchers to offset the tax payable.

(4) Small-scale taxpayers who cannot issue VAT invoices by themselves may apply to the competent tax authorities where the real estate is located for issuing VAT invoices on their behalf.

9. When real estate development enterprises presell self-developed real estate projects:

(1) Taxpayers shall prepay taxes to the competent tax authorities during the tax declaration period of the month following the receipt of advance payment.

(2) The VAT prepaid to the tax authorities can be deducted from the VAT  tax amount payable  in the current period. The remaining amount, if any, will be carried over to the next period for further deduction. Taxpayers shall use tax prepayment documentations as the legal and valid vouchers to offset the tax payable.

(3) Small-scale taxpayers who cannot issue VAT invoices by themselves may apply to the competent tax authorities where the project is located for issuing VAT invoices on their behalf.

10. When taxpayers providing construction services receive advance payment:

(1) The taxpayers shall prepay VAT according to the prescribed pre-charge rate on the sum of the advance payment minus the amount paid to the subcontractor.

(2) The pre-charge rate on projects the general taxation method is applicable to is 2%, and that on projects the simplified taxation method is applicable to is 3%.

(3) For projects that shall prepay VAT at the locality where the construction service takes place according to the current regulations, the taxpayers shall prepay VAT at the said locality upon receiving advance payment. For projects that may not prepay VAT at the locality where the construction service takes place according to current regulations, the taxpayers shall prepay VAT at the locality of their institution upon receiving advance payment.

11. When taxpayers (excluding other individuals) transfer their acquired real estate:

(1) The VAT prepaid to the competent tax authority of the place where the real estate is located can be deducted from the VAT payable in the current period; the remaining amount, if any, will be carried over to the next period for further deduction. Taxpayers shall use tax prepayment documentations as the legal and valid vouchers to offset the tax payable.

(2) If small-scale taxpayers transfer their acquired real estate and cannot issue a VAT invoice by themselves, they may apply to the competent tax authorities at the place where the real estate is located for issuing it on their behalf.

12. For the payment to subcontractors that taxpayers deduct from the sum of the total contract cost and  additional fees and charges that they have received in accordance with regulations, the taxpayers shall obtain legal and valid vouchers in accordance with laws, administrative regulations and the provisions of the State Taxation Administration, including:

(1) Business tax invoices of the construction industry, which were issued before April 30, 2016 and obtained from subcontractors, can be used as vouchers of deduction of prepaid taxes before June 30, 2016.

(2) VAT invoices issued after May 1, 2016, which are obtained from subcontractors and indicate the county (city, district) where the construction service takes place and the project name in the remarks column.

(3) Other vouchers as prescribed by the State Taxation Administration.

13. The pre-charge rates for various pre-charge projects in the VAT Prepayment Form are set as follows:

(1) Construction and installation: 2%, 3%;

(2) Sales of real estate: 3%;

(3) Rental of real estate: 3%, 5%;

(4) Rental of residential property owned by self-employed businesses: 1.5%(if the charge rate is 5%).

14. For small-scale taxpayers who shall prepay VAT according to the current regulations, if the monthly sales occurred in the place where it shall prepay VAT does not exceed 100,000 yuan (in the case of quarterly sales, if one quarter is one tax assessable period, 300,000 yuan is the threshold), they do not need to prepay VAT in the current period.