Change from Business Tax into VATIn case of divergence of interpretation, the Chinese text shall prevail.

Notice of Sichuan State Taxation Bureau and Sichuan Local Taxation Bureau on Issues Concerning Division of Certain Taxable Service Industries

Document No.:Huo Bian Han [2013] No.23

Taxes:Change from Business Tax into VAT

Date of Promulgation:

IssueDepartment:State Taxation Bureaus of Localities,Local Taxation Bureaus of Localities

Date of Implementatio:2013-07-09


State taxation bureaus of all cities and states, and taxation offices directly under the provincial bureau:


Upon consultations held jointly by Sichuan State Taxation Bureau and Sichuan Local Taxation Bureau, before the promulgation of any new regulations by the State Administration of Taxation, the issues on division of certain taxable service industries are clarified as follows. Please comply with it.


I. Taxable service items which are temporarily not included in the scope of VAT-for-BT reform 

(1) Water tour boats, sightseeing lifts and battery cars of tourist attractions, which fall in the scope of "Services - Tourism" is subject to Business Tax and does not belong to the scope of "transportation industry".


(2) Internet marriage consultation, job intermediaries

The intermediary service fee charged by taxpayers who are engaged in marriage consultation, job intermediaries on the Internet does not belong to the scope of "Information Technology services".


(3) Basic telecommunications services, telecommunications value-added services

The basic telecommunications services and telecommunications value-added services of basic telecom service operators and value-added telecom operators do not belong to the scope of "Information Technology services".


(4) Internet access services of telecommunications companies and broadcasting corporations

The Internet access services of telecommunications companies and broadcasting corporations do not belong to the scope of "radio, film and television businesses".


(5) Express business

The express business is a kind of "postal and telecommunication services", and it does not belong to the scope of "logistics auxiliary industry".


(6) Internet bar

The Internet bar is a kind of "entertainment business", and it does not belong to the scope of "Information Technology services".


(7) Rental of shopping counters

The rental of shopping counters is a kind of site rental, and it does not belong to the scope of "tangible personal property leasing".


(8) Listing fees, slotting allowances, heap header fees charged by malls

The listing fees, slotting allowances and heap header fees charged by malls belong to the "Services - Other Services", and they do not belong to the scope of "Cultural and Creative Services - Advertising Services".


(9) Rental of operational rights of transportation routes

The rental of operational rights of transportational routes belongs to the "leasing of intangible assets", and it does not belong to the scope of "tangible personal property leasing".


(10) Rental of sites for exhibitions and conferences

The rental of self-owned sites for exhibitions and conferences of other people belongs to the "lease of real property", and it does not belong to the scope of "Cultural and Creative Services - Conference and Exhibition Services".


(11) Compiling of project cost, project budget and final accounts

 Compiling "project cost, project budget and final accounts" for clients does not belong to the scope of "certification and consultancy services".


(12) Bidding agency business

The term "bidding agency business" does not belong to the scope of "certification and consultancy services".


II. The taxable services falling within the scope of material transfer of the VAT-for-BT reform:

(1) Subway, urban light rail

Subway and urban light rail services do not belong to the railway transportation; they belong to the scope of urban public land transportation services.


(2) Law firms, accounting firms

The various agent service items (such as bookkeeping, entrusted applications, trustee lawsuits, etc.) of law firms and accounting firms belong to the scope of "certification and consultancy services".


(3) Project supervision

The service "project supervision" belongs to the scope of "certification and consultancy services" of the VAT-for-BT reform.


(4) Transfer of the copyright of radio and television (programs)

The transfer of the copyright of radio and television (programs) belongs to the scope of "Cultural and Creative Services - transfer of trademark and copyright".


(5) Trailer rescue and traction services

The rescue and traction services provided by trailers and other vehicles belong to the transportation and handling services of transportation industry subject to the original business tax, and such services belong to the scope of "logistics auxiliary industry".


(6) Conference services provided by guesthouses, hotels, etc.

The conference services provided by guesthouses, hotels, etc. belong to the scope of "convention and exhibition services".


(7) Removing business

The removing business provided by removing companies belongs to the scope of "logistics auxiliary industry - loading and unloading transporting services".


(8) Notarization service

The notarization service belongs to the "certification and consultancy services - certification service".


(9) Inspection and testing services

The inspection and testing services provided by product quality supervision and inspection institutions (offices) of Sichuan Province belong to the scope of "certification and consultancy services - certification service".


(10) Trading platform services provided by exchanges for the factor market

The trading platform services provided by exchanges for the factor market belong to the scope of "information technology services - information system service".


III. Others

(1) Sichuan Radio and Television Network Corporation Limited

As for the cable TV subscription fees or the cable digital TV watching and maintenance costs charged from clients by Sichuan Radio and Television Network Corporation Limited and its branches at all levels, such costs shall be included in the scope of "radio and television services - radio and television programs (work) broadcasting services" of the VAT-for-BT reform; the landing fees charged from TV stations are temporarily not included in the scope of data transfer of the VAT-for-BT reform.


(2) Design, production and installation of colored lanterns

The design, production and installation of colored lanterns provided by a taxpayer shall be determined according to the business scope as regulated in the taxpayer's business license. If the business scope is "construction and installation" as regulated in the business license, such services shall be temporarily not included in the scope of data transfer of the VAT-for-BT reform; if the business scope is "design and production" as regulated in the business license, such services shall belong to the "cultural and creative services - design services" and shall be included in the scope of VAT-for-BT reform.


(3) Building design business

If the building design business is together with the construction business, such as home decoration, such a building design business belongs to the "construction industry" and shall be temporarily not included in the scope of pilot project; if the building design business is separately conducted, it shall belong to the "cultural and creative services - design services" and shall be included in the scope of VAT-for-BT reform.


(4) Advertising business of car bodyelevator or wall space

Where taxi companies and bus companies charge fees from advertising companies, which display ads in automobiles or make advertisement on automobile bodies through bidding or other forms, such a business is a kind of "tangible personal property leasing services" and it shall be included in the scope of VAT-for-BT reform; if property companies or property owners rent elevators or walls and other locations to advertising companies for placing LCD advertising screens, light boxes, etc., such a business is a kind of "real estate rental business" and it is temporarily not included in the scope of data transfer of the VAT-for-BT reform.


(5) Flower leasing and maintenance business

Flower leasing belongs to the "tangible personal property leasing services" and it shall be included in the scope of VAT-for-BT reform; the flower maintenance costs charged on terms or per time shall be temporarily not included in the scope of data transfer of the VAT-for-BT reform.


(6) Network operations of online games

 The provision of network operations provided by websites for the online games which are not owned by them shall be subject to VAT according to the "Information Technology Services"; the revenues obtained by websites from selling consumer cards and virtual products due to the operations of their own online games do not belong to the scope of "Information Technology Services".


July 9, 2013


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