Q: I am a catering company, has been enjoying the living service industry 15% credit policy, the end of 2022 there is a credit balance of 100,000 yuan has not been deducted, recently introduced a new credit policy, the balance of last year did not deduct the completion of this year can continue to deduct the balance of this year?

A: The Announcement of the Ministry of Finance and the State Administration of Taxation on Clarifying the Policies of VAT Reduction and Exemption for Small-scale Taxpayers and Other Policies (No. 1 of 2023) stipulates that taxpayers should apply the policy of addition and deduction of VAT and other related matters in accordance with the Announcement of the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs on the Deepening of the Reform of the Value-added Taxation and Other Policies (No. 39 of 2019), and the Announcement of the Ministry of Finance and the State Administration of Taxation on Clarifying the Policy on Announcement on Policies of Value-added Tax Credits and Deductions for Living Service Industry (No. 87 of 2019) and other relevant provisions.

Therefore, in accordance with the current policy, your company can continue to offset the taxable amount of the previously unsettled extra credit during the validity period of the extra credit policy. After the expiration of the policy, the taxpayer will no longer accrue additional credits, and the balance of the additional credits will cease to be deductible.