The catering industry is a personal consumption behavior. Small-scale taxpayers can issue VAT invoices, but not ordinary special VAT invoices. Provisions on not issuing special VAT invoices:

1. Personal consumption behavior and exemption behavior

According to Annex 1 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on comprehensively pushing forward the pilot project of changing business tax to VAT (Caishui [2116] No.36), special VAT invoices may not be issued under any of the following circumstances:

(1) Selling services, intangible assets or real estate to consumers.

(2) Taxable acts that are exempt from VAT.

VAT zero-rate taxable services that implement VAT refund (exemption) method shall not issue special VAT invoices.

II. Those who do not have the identity or fail to prove their identity

According to Article 33 of Annex 1 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Comprehensively Pushing Forward the Pilot Project of Changing Business Tax to Value-added Tax (Caishui [2116] No.36), in any of the following circumstances, the tax payable shall be calculated according to the sales and value-added tax rates, and the input tax shall not be deducted, nor shall special invoices for value-added tax be used: (1) The accounting of general taxpayers is not perfect, or (2) Failing to apply for the qualification registration of general taxpayers.

iii. Services that can issue ordinary invoices

The pilot taxpayers provide financing sale and leaseback services for tangible movable property, and the principal of the tangible movable property price collected from the lessee may not issue special VAT invoices, but may issue ordinary invoices.

for providing tourism services, the foreign-paid tourism expenses deducted from the total price and out-of-price expenses may not be invoiced for special value-added tax, but ordinary invoices may be issued.

taxpayers who choose to pay the difference tax when providing labor dispatch services charge the employing unit the fees for paying the wages and benefits of the labor dispatch employees and handling social insurance and housing accumulation fund for them, and may not issue special VAT invoices, but ordinary invoices.

taxpayers who provide human resources outsourcing services pay value-added tax according to brokerage services, and their sales do not include the wages paid to employees of client units on behalf of clients and the social insurance and housing accumulation fund paid by agents. The wages collected from the entrusting party and paid on its behalf, the social insurance and housing accumulation fund paid by the agent shall not issue special invoices for value-added tax, but ordinary invoices may be issued.

iv. transfer of financial commodities

according to the provisions of annex 2 of the circular of State Taxation Administration of The People's Republic of China of the Ministry of finance on comprehensively pushing forward the pilot project of changing business tax to value-added tax (caishui [2116] No.36), special invoices for value-added tax shall not be issued for the transfer of financial commodities.