A company's businesses are, generally, not a single act but a certain kind of sales or service behavior, which under the company tax treatment, it will process and encounter many complex accounting and tax treatment. Accounting staff shall base on the provisions of the accounting law and tax law, handle it correctly for every businesses. The followings lists out what we often encounter and it seems vague.
1. Either con-currently or hybrid sales are taxable services. It constitutes non-VAT taxable services. Non-VAT taxable services refers to the VAT tax-payer which engages in commodity (set aside consideration of repair and installation services, the same below) the production or by camp, but also engages in the transportation, construction, finance, insurance, telecommunications, culture and sports, entertainment, food service and others, the press "Implementation Regulations of the PRC on Business Tax" and its implementing rules, it operates under a separate business tax services. If VAT payers do not engage in business tax, it should levy labor. It would not has mixed sales and engaged in non-VAT taxable labor business situation.
2. "Mixed Sales" refers to a VAT payer, in the event of a merchandising business at the same time. It also is the non-value-added tax taxable services. At least, two actions occurred at the same time and place (spatial location), and other aspects of the same service object. Such as: A corporate sales iron 450 tons to C business, price at RMB 315,000; while it owned car with chargeable transport is responsible for transporting, in accordance with the provisions, the transport costs (including loading and unloading charges, the same below) RMB 10,000. The third business enterprises are, to receive it because of the transport costs of RMB 10,000. It is C, the corporate sales delivers 450 tons iron, so iron and thus sell 450 tons shipped this place. VAT lose business and it is called mixed sales activities, and which received a RMB 10,000 transportation costs and the price received of a RMB 315,000 iron. It is called mixed sales revenues. That happens on a non-VAT taxable services businesses with their sales of goods of its product, it only happens in a (sub-) independent, non-VAT taxable services, it cannot be the price of goods sold in conjunction with the normalized at a mixed sales revenues.
3. "Engaged in non-taxable services" refers to the VAT tax-payers, when operating in the production of commodity products, also engaged in the non-taxable VAT labor, but in more specific business, it occurs when there is no interdependence between the two, that is, the sales of goods resulting from non-taxable services that is non-occurrence and engages in non-VAT taxable services. It does not carry the sale of commodities. The sale of goods and provision of products are non-VAT taxable services, both in terms of time and may be the same, but in space, it is carried out separately. The target is not the same.
Such as: A business sells products to D enterprises. But it sells to F. A business enterprise is to provide transportation services, although the two actions are happened at the same time, but there is no causal relationship between them, the behavior where the "place" it take place is not the same.
Under the current "Provisional Regulations of the PRC VAT" (hereinafter referred to as "Provisional Regulations on VAT") and its implementing rules, those who are engaged in the production of goods, wholesale or retail business, enterprise units and individual industrial and commercial households, including cargo production, wholesale or retail oriented (sales accounted for 50% and above, the same below), and is also engaged in non-VAT taxable services units, individual industrial and commercial households mixed sales activities occur, the sale of goods are subject to VAT. Such as: A enterprise sells 450 tons of iron powder in the business, while the acquirer to provide transportation services then to receive RMB 10,000 transportation costs, if A enterprises are specialized in an iron production or business enterprises, or for the production or business that iron Lord, it should subject to VAT, on the contrast, they are not subject to VAT.
According to "State Administration of Taxation on Elevator Maintenance, Repairs Income Taxation" ( Guo Shui Han  No. 390 ) of the regulations, in lift production and those sales enterprises which sales lift ( whether self-produced or purchased) are responsible for installation and maintenance, maintenance of the revenue, altogether are with VAT, but, in elevator maintenance and repair of the professional company, to run after the installation of elevator maintenance and repair of the revenue is subject to VAT. However, those who engages in processing, repairs and replacement services and other VAT taxable business, the enterprise unit and individual, industrial and commercial households, mixed sales activities, are sales of non-VAT taxable services but not subject to VAT. It made processing, repair labor’s income should be subject to VAT.
"Provisional Regulations on VAT" and its implementing rules also provides that: mixed sales activities, in accordance with the provisions of Article 5, shall be subject to VAT, the hybrid sales practices involving non-VAT taxable services that is used for the purchase of goods VAT, grant in accordance with the "Provisional Regulations" Article 8, it deducts from output VAT. But following mixed sales activities, it shall be accounted for sales of goods and non-VAT turnover of taxable services. The sale of goods, in accordance with its terms of sales, shall be subjected to VAT (non-deductible input tax), non-VAT taxable services’ turnover is not subject to VAT; and must be accounted for separately by the relevant tax authorities for their goods sales :-
(1) Sale or production of goods and to provide construction services behavior ;
(2) Ministry of Finance, State Administration of Taxation in other cases.