Shaanxi National Tax Releases Administrative Measures for Value Added Tax for Coal Production Enterprises

Recently, in order to further strengthen tax administration according to law and standardize the administration of value-added tax collection for coal production enterprises in Shaanxi Province, the Shaanxi Provincial State Taxation Bureau has formulated the “Administrative Measures on Value-added Tax for Coal Production Enterprises in Shaanxi Province” (Announcement No. 1 of 2010 of the Shaanxi Provincial State Administration of Taxation, The method referred to below shall be implemented as of September 1, 2010. The measures apply to enterprises engaged in coal production within the scope of Shaanxi Province, including enterprises and enterprise units concurrently engaged in coal production.

The Measures require that coal production enterprises should be equipped with accountants with accounting qualifications, set up account books in accordance with the provisions of the accounting system, and conduct accounting according to legal and valid vouchers to provide accurate tax information. If the general VAT taxpayer of a coal production enterprise is not well-accounted for or is unable to provide accurate tax information, it shall calculate the amount of tax payable according to the value-added tax rate, and may not deduct the input tax amount or use special VAT invoices.

According to the need for value-added tax management, a coal production enterprise shall set up a "basic account for the production, sales, and storage of coal products"; "reservation of local accounts for the use of civilian products"; and other accounts required by the competent tax authorities. The invoice should be used in accordance with the relevant provisions of invoice management. VAT general taxpayers must issue VAT invoices or VAT ordinary invoices through the VAT anti-counterfeit tax control system. The invoice fill-in project must be complete, and the contents of the goods such as the name, specification, model, sales quantity, sales price, etc. must be consistent with the actual transaction of the company. The sales income shall be recognized in accordance with the timing of the VAT tax liability as stipulated in the current policy, and taxes shall be declared and paid on schedule.

If the price of coal products sold by a coal production enterprise is obviously low and there is no justification, the competent tax authority shall verify sales according to the relevant provisions of the tax law.

The competent tax authority shall monitor and analyze the production and operation and tax declaration status of coal production enterprises on a monthly basis. Key monitoring and analysis: production, sales, quantity and changes of coal products. The main production workers' wages, civilian products, electricity and other major production cost factors such as the consumption and changes. Coal product sales prices and changes. VAT taxable sales and changes. Output tax amount and changes. Inland road freight invoices, fixed assets, refined oil and other input tax amounts and changes. Input tax amount transferred and changes. VAT payables and changes. Value-added tax tax burden and tons of coal VAT tax burden and changes.

After the end of the monthly tax reporting period, the tax administrator shall check the status of the coal producer's VAT tax returns and the use of invoices. Key verifications: (1) Verification of the accuracy and authenticity of items such as value-added tax taxable sales, output tax, input tax, input tax amount transfer amount, and tax payable amount declared by the taxation enterprises. In respect of VAT taxable sales and output tax amounts, it is necessary to focus on checking whether sales revenue and unpaid gifts, etc., are recognized as sales tax declarations based on the timing of the tax liability as stipulated by the tax law; input tax credits are applied for deductions and transfers. , should focus on verification of the deductible transport costs, fixed assets and input oil product tax compliance with tax regulations. (2) To verify whether the coal production enterprises issue special value-added tax invoices and ordinary value-added tax invoices in accordance with the provisions of the tax law, and whether the business is real. (3) The authenticity of the number of copies, amounts, and tax amounts of the special value-added tax invoices, highway inland freight transport invoices, motor vehicle sales special invoices and matching customs import value-added tax special payment certificates certified by the coal production enterprises; Legitimacy for verification. (4) To verify the authenticity and accuracy of abnormalities reported by the coal production enterprises discovered during daily monitoring. It focuses on checking the current production, stock, sales volume of coal products, the consumption of civilian products, the consumption of production electricity, the wages of the main production workers, and the sales price of coal products.

The tax administrator shall complete the verification work before the end of the month of declaration, and fill in the “Certification Form for Coal Enterprises’ Tax Returns (I)” and “Checklist for the Status of Coal Manufacturers Tax Returns (II)” according to the verification status, and make “Coal Production”. The audit report on the status of tax returns for enterprises shall be submitted to the taxation office (branch), the administrative department of goods and services of the county (district) bureau and the director of the county (district) administration for approval. If there are problems in the verification, VAT tax assessment or tax inspection shall be carried out according to the verification opinions. Coal production enterprises shall file with the competent tax authorities for effective mining licenses, production safety licenses, and coal production licenses, and strictly implement relevant regulations such as cash management.