How to pay VAT with virtual currency

1. The income obtained from the purchase of virtual currency by an indivial through the Internet and the sale to others after the price increase belongs to the taxable income of personal income tax, which should be calculated and paid according to the item of "income from property transfer". The original value of the property sold by an indivial is the price and related taxes paid by the acquisition of virtual currency. If an indivial is unable to provide evidence of the original value of his property, the original value of his property shall be verified by the competent tax authorities. All online transactions that earn income should be taxed

2. According to the official reply of the State Administration of Taxation on the issue of indivial income tax on the income of indivials from buying and selling virtual currency through the Internet (GSH [2008] No. 818), the income obtained by indivials from purchasing players' virtual currency through the Internet and selling it to others after price increase belongs to the taxable income of indivial income tax, The indivial income tax shall be calculated and paid according to the item of "income from property transfer". The original value of an indivial's property in selling virtual currency is the price and related taxes paid for his purchase of network virtual currency. If an indivial is unable to provide evidence of the original value of his property, the original value of his property shall be verified by the competent tax authorities.

3. According to the official reply of the State Administration of Taxation on the issue of indivial income tax on the income of indivials from buying and selling virtual currency through the Internet (GSH [2008] No. 818), the income obtained by indivials from purchasing players' virtual currency through the Internet and selling it to others after price increase belongs to the taxable income of indivial income tax, The indivial income tax shall be calculated and paid according to the item of "income from property transfer". The original value of an indivial's property in selling virtual currency is the price and related taxes paid for his purchase of network virtual currency. If an indivial is unable to provide evidence of the original value of his property, the original value of his property shall be verified by the competent tax authorities.

4. The State Administration of Taxation emphasizes that the original value of an indivial's property in selling virtual currency, the price paid for his purchase of network virtual currency and related taxes. If an indivial is unable to provide evidence of the original value of his property, the original value of his property shall be verified by the competent tax authorities

according to the relevant sources of Beijing Local Taxation Bureau, the tax rate of indivial income tax calculated according to the "income from property transfer" project is fixed at 20%, and Beijing Local Taxation Bureau will also introce relevant measures to verify the original value of virtual currency property sold by indivials

about virtual currency:

virtual currency refers to the substitute currency circulating in the network virtual world. In addition to the virtual currencies issued by major online game companies with various names, Tencent Q currency is also widely used

at present, the online transaction in the virtual world has greatly exceeded people's imagination, and has formed a huge online transaction market of proction, supply and marketing. Moreover, a group of professional workers specialized in "coin printing" came into being; There are also special exchange shops for various game currencies.

5. The State Administration of Taxation announced on the 28th the "reply on the issue of personal income tax on the income of indivials from buying and selling virtual currencies through the Internet", which means that domestic indivials must pay personal income tax on the income they get from selling virtual currencies to others after they purchase virtual currencies through the Internet

in response to the Beijing Local Taxation Bureau's request for instructions on the issue of indivial income tax on the income derived from the sale of virtual currency through the Internet, the State Administration of Taxation has made the above reply, clearly stipulating that the income derived from the purchase of virtual currency through the Internet and the sale to others after the price increase belongs to the taxable income of indivial income tax, The indivial income tax shall be calculated and paid according to the item of "income from property transfer"

at the same time, the State Administration of Taxation emphasizes that the original value of the property of an indivial selling virtual currency is the price and related taxes paid for his purchase of network virtual currency. If an indivial is unable to provide evidence of the original value of his property, the original value of his property shall be verified by the competent tax authorities

according to the relevant sources of Beijing Local Taxation Bureau, the tax rate of indivial income tax calculated according to the project of "income from property transfer" is fixed at 20%. Beijing Local Taxation Bureau will also introce relevant measures to verify the original value of virtual currency property sold by indivials, but there is no timetable for the implementation of the policy at present.

6. Beijing Local Taxation Bureau:
we have received your request for instructions on the issue of personal income tax collection for indivials who obtain income from online sales of virtual currency (jdsge [2008] No. 114). The reply is as follows:
1. The income obtained by an indivial from purchasing a player's virtual currency through the Internet and selling it to others after a price increase belongs to the taxable income of personal income tax, which should be calculated according to & quot; Income from property transfer; Indivial income tax is calculated and paid
2. The original value of an indivial's property selling virtual currency is the price and relevant taxes paid for his purchase of network virtual currency< 3. If an indivial is unable to provide the original value certificate of the property, the original value of the property shall be verified by the competent tax authority<

State Administration of Taxation
September 28, 2008

7. The main points of the official reply of the State Administration of Taxation on Levying Indivial Income Tax on the purchase and sale of virtual currency; Income from property transfer; Indivial income tax is calculated and paid< 2. The original value of a person's property selling virtual currency is the price and relevant taxes paid for his purchase of network virtual currency< (3) if an indivial is unable to provide evidence of the original value of the property, the original value of the property shall be verified by the competent tax authority
small survey

8. Don't you want to do it? Report your company. Call the tax bureau to report it. However, tax evasion depends on the accounts. If you just say so, the evidence is not enough. However, you can collect your invoice from the company and sign it, and then you can provide the invoice in your life on the account. These have nothing to do with the proction and operation of enterprises. This enterprise is really evading taxes. It can be reported.

9. It's illegal< The laws and regulations are based on the following:
enterprise income tax law
... Article 8 the reasonable expenses actually incurred by an enterprise in connection with the income obtained, including costs, expenses, taxes, losses and other expenses, are allowed to be dected when calculating the taxable income< Article 22 the invoice shall be issued in accordance with the time limit, sequence and column specified in the measures for the administration of invoices, and all copies shall be truthfully issued at one time and stamped with the special seal for invoice
Any unit or indivial shall not issue false invoices as follows:
(1) issue invoices for others or for themselves that are inconsistent with the actual business situation
(2) let others issue invoices for themselves that are inconsistent with the actual business situation
(3) introce others to issue invoices that are inconsistent with the actual business situation< Article 63 A taxpayer who forges, alters, conceals or destroys account books or accounting vouchers without authorization, or overstates expenditure or fails to list or understates income in account books, or refuses to apply for tax returns after being notified by tax authorities, or makes false tax returns, or fails to pay or understay tax payable, is tax evasion. If a taxpayer evades tax, the tax authorities shall recover the tax that he fails to pay or underpays and the overe fine, and impose a fine of not less than 50% but not more than five times the amount of tax that he fails to pay or underpays; If a crime is constituted, criminal responsibility shall be investigated according to law
...
please refer to.

10. According to the notice of the Ministry of Finance and the State Administration of Taxation on comprehensively promoting the pilot project of replacing business tax with value-added tax (CS [2016] No. 36), Annex 1 measures for implementing the pilot project of replacing business tax with value-added tax and the notes on sales services, intangible assets and real estate, it is stipulated that "(VII) life services... 3. Tourism and entertainment services
tourism and entertainment services, including tourism services and entertainment services
(1) tourism service refers to the business activities of organizing and arranging transportation, sightseeing, accommodation, catering, shopping, entertainment, business and other services according to the requirements of tourists
(2) entertainment service refers to the business that provides places and services for entertainment activities at the same time
specifically including: singing hall, dance hall, nightclub, bar, billiards, golf, bowling, recreation (including shooting, hunting, horse racing, game machine, bungee jumping, kart, hot air balloon, power umbrella, archery, darts)
therefore, the value-added tax should be paid according to entertainment services, with 6% for ordinary taxpayers and 3% for small-scale taxpayers.