Can small-scale taxpayer reduce the stock of listed company be exempted from VAT?

2022-07-21 0 By

When a unit sells the stocks of a listed company, the sales amount shall be the balance of the selling price minus the buying price, and VAT shall be paid according to the transfer of financial commodities.The shareholders of many listed companies are only holding platforms and do not carry out production and operation businesses, such as partnerships or investment companies, which are basically small-scale taxpayers.According to the recently issued Notice of the State Administration of Taxation of the Ministry of Finance on the Exemption of VAT for Small-scale VAT Taxpayers (No.15, 2022), from April 1, 2022 to December 31, 2022, small-scale VAT taxpayers will be exempted from VAT at the taxable sales income of 3% of the levy rate.So some shareholders of listed companies may be small-scale taxpayers, in the reduction of stocks can enjoy the policy of VAT exemption?For example, on April 8, 2022, Wuhan Fingu Electronic Technology Co., Ltd.(Securities code: 002194, Securities abbreviation:Wuhan Fingu Electronic Technology Co., Ltd. has issued a “Wuhan Fingu Electronic Technology Co., Ltd. advisory notice on shareholders holding more than 5% of the company’s shares reducing by more than 1% and the equity change reaches 5%”,Shenzhen trust huaye equity investment fund management co., LTD. – pingtan huaye strategic investment partnership (limited partnership) (hereinafter referred to as the “huaye strategy”), shenzhen trust huaye equity investment fund management co., LTD. – pingtan huaye value investment partnership (limited partnership) (hereinafter referred to as the “huaye value”) at 1144 strands, total holdings of shares in a companyAccounting for 1.6808% of the company’s current total share capital.The reduction situation is as follows: The reduced shares of Huaye Value and Huaye Strategy are from the shares of the company transferred by the controlling shareholder through agreement in November 2018 at a price of 4.43 yuan per share.Assuming that huaye strategy and huaye value are small-scale taxpayers, whether the reduction of holdings on April 6 can be exempted from VAT?According to the Circular of the State Administration of Taxation of the Ministry of Finance on Comprehensively Promoting the Pilot Project of Replacing Business Tax with VAT (Finance and Taxation [2016] No. 36), when a unit sells the stocks of a listed company, the sales amount shall be the balance of the selling price minus the buying price, and VAT shall be calculated and paid according to the transfer of financial goods.The shareholders of many listed companies are only holding platforms and do not carry out production and operation businesses, such as partnerships or investment companies, which are basically small-scale taxpayers.So when its reduce hold a stock, although reduce hold amount very big, exceed 5 million yuan, but still be small-scale taxpayer identity, have its sales volume only (according to the sales volume before balance) exceed 5 million yuan when, should deal with average taxpayer to register formalities, or tax authority asks its to deal with register formalities.According to the statement No. 15 in 2022, when it is a small-scale taxpayer, it cannot be concluded that it cannot enjoy VAT exemption.If it can be exempted, the shares of Huaye Value and Huaye Strategy reduced on April 6 can be exempted from VAT, but the shares of Huaye Value reduced on March 30 need to be declared and paid VAT normally.However, the background of further tax and fee reduction for small-scale taxpayers is to support the development of the real economy and small and micro enterprises. As long as such enterprises reduce their holdings of stocks, they are generally no longer small-scale taxpayers, which seems not to be within the scope of support.The specific implementation, need to pay attention to the subsequent caliber.