Article 5 of State Taxation Administration of The People's Republic of China Proclamation (No.8, 2020) stipulates that the income obtained by taxpayers from providing life services shall be exempted from value-added tax. The specific scope of living services shall be implemented in accordance with Notes on Sales Services, Intangible Assets and Real Estate (Caishui [2065438+06] No.36). Life service refers to all kinds of service activities provided to meet the daily needs of urban and rural residents, including cultural and sports services, education and medical services, tourism and entertainment services, catering and accommodation services, daily services of residents and other life services. Accommodation service and catering service, two taxable behaviors, belong to the category of life service.

Article 48 of the Measures for the Pilot Implementation of Changing Business Tax to VAT (Cai Shui [20 1 6] No.36, annex1) stipulates that taxpayers who implement tax reduction or exemption may give up tax reduction or exemption and pay VAT in accordance with regulations. After giving up tax relief, you may not apply for tax relief again within 36 months.

Therefore, hotels can choose to enjoy the preferential treatment of exemption of value-added tax for catering services in accordance with the above provisions, and at the same time waive the exemption of value-added tax for accommodation services. Once you give up, you may not apply for exemption from value-added tax on accommodation services within 36 months.