In the actual operation of the company, we will encounter various problems. For example, when the purpose of the purchased equipment is changed, how to deal with it in terms of tax? Today, our tax accountant office explains one of these situations.

According to the Announcement of the State Administration of Taxation on Matters related to Deepening the Reform of value-added Tax2019Annual regulation14As stipulated in Article 6 and Article 7, if abnormal losses occur to immovable property that has been deducted for input tax, or its purpose is changed to be used exclusively for tax items calculated by simple method of tax calculation, VAT exemption items, collective welfare or individual consumption, the input tax that cannot be deducted shall be calculated according to the following formula and deducted from the input tax of the current period: Input tax that cannot be deducted＝Input tax has been deducted×Real estate equity rate, real estate equity rate＝(net real estate value÷Real estate original value)×100%; If the purpose of an immovable property that is not allowed to deduct input tax according to the regulations is changed to be used for an item allowing the deduction of input tax, the deductible input tax shall be calculated in the month following the change of use in accordance with the following formula＝Input tax indicated or calculated on a VAT withholding document×Real estate equity ratio.

For example, a production enterprise is a VAT general taxpayer, in2021years5The monthly purchase of equipment that has been deducted the input tax is changed and used as the employee welfare equipment. The original value of the equipment is100Ten thousand yuan, input tax13Million, net worth rate91%, then the input tax needs to be transferred out when the equipment makes this change.

Amount of input tax transferred out13The input tax has been deducted*91%(net worth ratio)=11.83Ten thousand yuan

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