Core Viewpoint - The article discusses the recent tax policy changes regarding the prepayment of value-added tax (VAT) for construction enterprises, specifically the reduction of the prepayment rate to 1% and the conditions under which subcontracting payments can be deducted from taxable income [3]. Tax Policy Changes - The prepayment of VAT is calculated as: (Total sales and additional expenses - Subcontracting payments) ÷ (1 + 1%) × 1% [3]. - Subcontracting payments can be deducted only if valid legal documents are obtained, including specific types of invoices issued before and after certain dates [3]. Deduction and Carryover - If the balance after deducting subcontracting payments is negative, it can be carried over to the next prepayment period [3]. - Prepaid tax can offset the current tax payable, and any unused portion can be carried forward, provided that the taxpayer retains the payment certificates as evidence [3]. Frequently Asked Questions - For construction enterprises classified as small-scale VAT taxpayers filing quarterly, if there are multiple projects in the same tax jurisdiction, the total sales for all projects must be assessed to determine if VAT prepayment is necessary. If quarterly sales exceed 300,000 yuan, prepayment is required [3]. - Taxpayers can log into the electronic tax bureau to declare VAT prepayment by selecting the relevant tax sources for the jurisdiction where the projects are located [3].