Core Viewpoint - The article discusses the differences in tax treatment between project guarantee deposits and additional fees, emphasizing that guarantee deposits are not subject to VAT, while additional fees are taxable [5][7][23]. Summary by Sections Project Guarantee Deposits - Project guarantee deposits are collected to ensure the smooth execution of contracts and are not included in the taxable scope of VAT, provided they are refunded on time and not used for other taxable projects [5][23]. Additional Fees - Additional fees refer to extra charges collected from buyers during the sale of goods or provision of services, such as handling fees, rewards, penalties, and late fees. These fees must be included in the taxable sales amount and are subject to VAT at the applicable rate [7][23]. Tax Regulations - According to the "Interim Regulations on Value-Added Tax" and related notifications, there are significant differences in the VAT treatment of project guarantee deposits and additional fees [3][20]. - The article outlines specific types of additional fees that are taxable, including handling fees, compensation, rewards, and penalties [8][10][12][20]. Importance of Compliance - Companies must be aware of these tax regulations to avoid issues with tax authorities, especially regarding the handling of guarantee deposits and additional fees in project contracts [24][25].