1. My company is a small-scale VAT payer that files monthly returns and expects to earn 200,000 RMB from the sale of goods in January 2023, what kind of tax exemptions and reductions can I enjoy and how should I issue VAT invoices?

Answer: Article 2 of

Announcement of the Ministry of Finance and the State Administration of Taxation on Clarifying the Policies of Reducing and Exempting Value-added Tax and Other Policies for VAT Small-Scale Taxpayers

(No. 1 of 2023) stipulates that, from Jan. 1, 2023, to Dec. 31, 2023, VAT small-scale taxpayers shall be subject to a reduction of 1 percent in the rate of VAT on the income from the sale of goods for which a taxable collection rate of 3 percent is applicable. VAT. Article 5 of the

Announcement of the State Administration of Taxation on Matters Relating to the Levy and Administration of the Policy of Reducing or Exempting VAT and Other Policies for Small-Scale Taxpayers of the Value-Added Tax (VAT)

(No. 1 of 2023) stipulates that small-scaled taxpayers obtaining taxable sales revenues subject to the policy of applying a reduced VAT levy rate of 1 percent shall issue VAT invoices in accordance with the 1 percent levy rate.　　　　

So, the revenue of 200,000 yuan from the sale of goods in January can be applied to the policy of VAT at a reduced rate of 1% and VAT invoices or ordinary VAT invoices should be issued at a rate of 1%.

2. Our company is a VAT small-scale taxpayer that files monthly returns, and on January 3, 2023, it issued 4 tax-exempt invoices on its own which have been handed over to its customers. Is it necessary to recover the above tax-exempt invoices if we want to enjoy the policy of reducing the VAT levy by 1%?

Answer: Article 2 of the Announcement of the Ministry of Finance_Secretariat of Taxation on Clarifying the Policies of Reducing and Exempting Value-added Tax and Other Policies for VAT Small-Scale Taxpayers (No. 1 of 2023) stipulates that, from Jan. 1, 2023 to Dec. 31, 2023, the value-added tax (VAT) shall be reduced by 1% on the taxable income of VAT small-scale taxpayers who are subject to a taxable income collection rate of 3%.

If you meet the above provisions, you can enjoy the policy of reducing the VAT levy rate by 1%, and the tax-exempt invoices issued before the release of the above policy document do not need to be recovered, and you can just calculate and pay the VAT at a reduced rate of 1% when declaring tax. It should be noted that Article 5 of the Announcement of the State Administration of Taxation on Matters Relating to the Levy and Administration of the Policy of Reducing or Exempting Value-added Tax and Other Policies for Small-scale Taxpayers of Value-added Tax (No. 1 of 2023) stipulates that small-scale taxpayers obtaining taxable sales revenues subject to the policy of applying a reduced levy rate of 1% for the collection of value-added tax shall issue value-added tax invoices in accordance with the levy rate of 1%. Therefore, after the release of the above policy document, taxpayers applying the policy of reducing the VAT levy rate by 1% shall issue VAT invoices in accordance with the 1% levy rate.

3. I am a citizen, who issued an invoice of RMB 2,000 on behalf of my client on January 3, 2023 at the Tax Service Office, and paid the tax according to the 3% levy rate because it exceeded the starting point of RMB 500 per tax payment, and issued an ordinary VAT invoice with a 3% levy rate on behalf of my client, which was handed over to the client. Can I enjoy the policy of reducing the VAT levy by 1% and do I have to recover the invoice?

Answer: Article 2 of the Announcement of the Ministry of Finance_Secretariat of Taxation on Clarifying the Policy of Reducing and Exempting VAT and Other Policies for VAT Small-Scale Taxpayers (No. 1 of 2023) stipulates that, from Jan. 1, 2023 to Dec. 31, 2023, the taxable sales revenue of VAT small-sized taxpayers to which the tax rate of 3% applies is subjected to VAT at a reduced tax rate of 1%. Article 4 stipulates that VAT subject to reduction or exemption in accordance with the provisions of this Announcement, which has been collected before the issuance of this Announcement, may be credited against the tax payable by the taxpayers in the subsequent tax periods or refunded.

So, you can enjoy the policy of reducing the VAT collection rate by 1% in accordance with the above provisions, and the tax authorities will refund the overpaid tax, and you don't need to recover the ordinary VAT invoices with a collection rate of 3% that have been issued on behalf of you before the issuance of the above policy document.

4. I am a small-scale VAT payer who files quarterly returns, and on January 5, 2023, I issued a VAT invoice with a 3% levy rate and provided it to my downstream customer for input tax deduction, and I have not yet filed a tax return. For this sales revenue, if I want to enjoy the policy of reducing the VAT levy by 1%, do I have to recover the special invoice issued with a levy rate of 3%?

Answer: Article 2 of the Announcement of the Ministry of Finance and the State Administration of Taxation on Clarifying the Policies of Reducing and Exempting Value-added Tax and Other Policies for VAT Small-Scale Taxpayers (No. 1 of 2023) stipulates that, from Jan. 1, 2023 to Dec. 31, 2023, the value-added tax (VAT) shall be reduced by 1% on the taxable income of VAT small-sized taxpayers for which the taxable income is subject to a levy rate of 3%.

You can enjoy the policy of reducing the VAT levy rate by 1% on the taxable sales income to which the 3% levy rate applies. However, the VAT special invoice has the function of deduction, and you have issued the VAT special invoice with 3% levy rate to the buyer, and you can apply the policy of reduced VAT levy on this business only after you have recovered all the copies of the VAT special invoice to be invalidated, or issued the special invoice in red characters according to the regulations. Otherwise, it is necessary to declare and pay VAT at the rate of 3% on the taxable sales income for which VAT invoices have been issued.

5. I am a self-employed small-scale VAT payer who files quarterly returns, and my projected sales revenue for the first quarter of 2023 is 250,000 yuan. Can I waive the tax exemption for part of my business and issue VAT invoices with 1% or 3% levy rate according to my customer's request?

A: According to the relevant provisions of Article 4 and Article 5 of the Announcement of the State Administration of Taxation on Matters Relating to the Levy and Administration of VAT and Other Policies on Reduction and Exemption of Value-added Tax by Small-sized Taxpayers (No. 1 of 2023), small-sized taxpayers applying the policy of exemption of value-added tax with monthly sales of less than 100,000 yuan can choose to waive the exemption of tax and issue special invoice of value-added tax in respect of the sales income; small-sized taxpayers applying the policy of 3 percent If a small-scale taxpayer applies the policy of VAT exemption for sales income at a reduced rate of 1%, it may choose to waive the tax reduction and issue VAT invoices for the sales income.

You may, according to your actual business needs, waive the above tax reduction or exemption policy for part of your business, pay VAT at the rate of 1% or 3%, and issue VAT invoices at the corresponding rate.

6. How should small-scale VAT payers applying the policy of reducing the VAT levy on sales revenue at 3% levy rate by 1% levy rate convert their sales with tax-inclusive sales in 2023?

Answer: Article 1 of

Announcement of the State Administration of Taxation on Clarifying Certain VAT Levy and Administration Issues on Used Vehicle Distribution and Other Issues

(No. 9 of 2020) stipulates that taxpayers are to reduce the VAT levy by the 0.5% levy rate and calculate the sales amount according to the following formula: sales amount = tax-inclusive sales amount/(1+0.5%). If a new policy on the change of VAT collection rate is introduced after the issuance of this announcement, the sales will be calculated according to the principle of the above formula.

According to the above provisions, the Announcement of the State Administration of Taxation on Matters Relating to the Levy and Administration of the Policies of Reduction and Exemption of Value-added Tax and Other Policies for Small-scale Taxpayers of the Value-added Tax (No. 1 of 2023) does not repeat the clear formula for the conversion of sales, and, mutatis mutandis, the principle of the above formula, and the formula for calculating sales for small-scale taxpayers of the Value-added Tax who are subject to the policy of reduction of the sales income of the collection rate by 1% at a levy rate of 3% is as follows: Sales=Sales inclusive of taxes Sales/(1+1%).

7. I am a small construction company in City A with construction projects in both City B and City C. I am a small-scale VAT payer that files quarterly returns. My company expects sales of 600,000 yuan in the first quarter of 2023, of which 400,000 yuan is sales of construction projects in City B and 200,000 yuan is sales of construction projects in City C. How should I pay the VAT?

Answer: Article 2 of the Announcement of the Ministry of Finance_Secretariat of Taxation on Clarifying the Policies on Reducing and Exempting VAT and Other Policies for VAT Small-Scale Taxpayers (No. 1 of 2023) stipulates that, from Jan. 1, 2023 to Dec. 31, 2023, the taxable sales revenues of small-scale taxpayers of VAT applying the taxing rate of 3% will be subjected to a reduction of the tax rate of 1 percent for the VAT levied on the sales revenues. Article 1 of the Announcement of the State Administration of Taxation on Matters Relating to the Levy and Administration of VAT Reductions and Exemptions and Other Policies for Small-Scale VATpayers (No. 1 of 2023) stipulates that small-scaled VATpayers shall be exempted from the levy and collection of VAT if they incur VAT-taxable sales with an aggregated monthly sales volume of not more than 100,000 yuan (or 300,000 yuan for quarterly sales volumes if a quarterly period is taken as the first tax period). Article 9 stipulates that small taxpayers who should prepay VAT in accordance with the current regulations shall not be required to prepay VAT for the current period if the monthly sales realized at the place of prepayment do not exceed RMB 100,000 yuan. If the monthly sales realized at the place of prepayment exceed 100,000 yuan, the prepayment of VAT items to which the 3% prepayment rate applies shall be reduced by 1% prepayment rate.

Your company's sales of 600,000 yuan in the first quarter of 2023 exceed 300,000 yuan, so it cannot enjoy the VAT exemption policy for small taxpayers, and it can enjoy the policy of VAT at a reduced rate of 1% in City A, the place of organization. The sales of 400,000 yuan realized in City B, the place of prepayment for construction services, are subject to a reduced VAT prepayment rate of 1%; the sales of 200,000 yuan realized in City C, the place of prepayment for construction services, are not subject to VAT prepayment.

8. I am a citizen who has stores for rent, and I receive a lump sum of 1,440,000 yuan in April 2023 for the previous 12 months' rent, do I need to pay VAT?

Answer: Article 3 of the Announcement of the State Administration of Taxation on Matters Relating to the Levy and Administration of VAT and Other Policies on the Reduction and Exemption of Value-added Tax for Small-scale Taxpayers (No. 1 of 2023) stipulates that the other individuals referred to in Article 9 of the Implementing Rules of the Provisional Regulations of the PRC on Value-added Tax (VAT), who take the form of one-time collection of rent to lease out real estate to obtain the rental income, can be If the monthly rental income after apportionment does not exceed 100,000 yuan, it is exempted from VAT.

You received a lump-sum rent of 1,440,000 yuan in April 2023 for the previous 12 months, with an average monthly rental income of 120,000 yuan. Of this, the monthly rent for January-March 2023 exceeded $100,000 and was subject to VAT, but the monthly rent for April-December 2022 did not exceed the then standard of $150,000 in tax-free monthly sales, and was therefore not subject to VAT.

9. Our company is a small-scale VAT payer that files monthly returns. On January 6, 2023, we transferred a store, and after excluding the sales of the transferred store, the sales in January are expected to be under RMB100,000, and all of them are issued with ordinary VAT invoices, can we enjoy the policy of exempting VAT, and what should we pay attention to when filing returns?

Answer: Article 1 of the Announcement of the State Administration of Taxation on Matters Relating to the Levy and Administration of VAT Reduction and Exemption and Other Policies for Small-Scale Taxpayers (No. 1 of 2023) stipulates that, for small-scale taxpayers who have incurred VAT-taxable sales behaviors, and whose combined monthly sales are more than 100,000 yuan, but not more than 100,000 yuan after deducting the sales of immovable property incurred in the current period, their sales made from the sale of goods, labor, services and intangible assets are exempt from VAT.

When your company applies for the VAT declaration for the tax period of January, it should accurately enter the data of "sales of real estate during the current period" in the filing interface of the "VAT and Additional Tax Return (for small taxpayers)", and the system will automatically calculate the sales of real estate after deduction of sales of real estate during the current period. If the sales amount after deduction does not exceed 100,000 yuan, the company can enjoy the VAT exemption policy. In the process of tax declaration, the sales after deduction should be filled in the relevant columns of "Exempted Sales" in the "Return of VAT and Additional Taxes and Fees (for Small-sized Taxpayers)".

10. Our company is a small-scale VAT taxpayer which declares monthly, and the sales of RMB 150,000 applying 3% levy rate occurred in January 2023, and all of them were invoiced on January 4, among which RMB 100,000 was invoiced as tax-exempted invoice, and RMB 50,000 was invoiced as VAT ordinary invoice of 3% levy rate, which can be applied to the policy of 3% minus 1% levy rate in accordance with the regulations, so may I ask how to handle the tax period of January? How to handle the VAT declaration for the tax period of January?

Answer: Article 7 of the Announcement of the State Administration of Taxation on Matters Relating to the Levy and Management of the Policy of Reducing and Exempting Value-added Tax and Other Policies for Value-added Tax Small-scale Taxpayers (No. 1 of 2023) stipulates that, in accordance with the Announcement of the Ministry of Finance and the State Administration of Taxation on the Clarification of Policies of Reducing and Exempting Value-added Tax and Other Policies for Value-added Tax Small-scale Taxpayers (No. 1 of 2023), the taxpayers should apply the policy of reducing the collection rate by 1% for the collection of In case of VAT, the corresponding sales shall be entered in the corresponding column of "Taxable VAT Excluding Sales (3% Collection Rate)" in the "Return of VAT and Additional Taxes and Fees (Applicable to Small-scale Taxpayers)", and the corresponding reduced VAT payable shall be entered in the column of "Current Period" in the "Return of VAT and Additional Taxes and Fees (Applicable to Small-scale Taxpayers)", and the corresponding reduced VAT payable shall be calculated according to the sales at the rate of 2%. The corresponding reduced VAT payable amount is calculated according to 2% of sales and entered in the corresponding columns of "Reduction of tax payable for the current period" of "Return of VAT and Additional Taxes and Fees (for small-scale taxpayers)" and the corresponding columns of the tax reduction items of the "Detailed VAT Return".

Your company is subject to the policy of reducing the VAT levy rate by 1%, and the taxable sales of tax-exempt invoices and ordinary VAT invoices with a levy rate of 3% that have been issued before the issuance of the aforesaid policy document shall be reported in accordance with the above requirements.

11. My company is a small-scale VAT payer that files quarterly returns, and the expected sales revenue for the first quarter of 2023 is less than 300,000 yuan, how should I fill in the return?

Answer: Article 7 of the Announcement of the State Administration of Taxation on Matters Relating to the Administration of VAT and Other Policies on VAT Exemption and Reduction for Small-Scale Taxpayers (No. 1 of 2023) stipulates that, for small-scaled taxpayers who have VAT-taxable sales and whose combined monthly sales do not exceed RMB 100,000, the items such as VAT-exempted sales should be filled out in the "Value-added Tax and Additional Taxes and Fees". The items such as VAT-exempted sales should be filled in the relevant columns of "VAT and Additional Taxes and Fees Declaration Form (for Small-Scale Taxpayers)", "Tax-exempted Sales for Small and Micro Enterprises" or "Sales before Reaching the Starting Point".

Your company's total sales for the first quarter are not expected to exceed 300,000 yuan, and when applying for the VAT declaration, the tax-exempted sales should be filled in column 10 "Tax-exempted Sales for Small and Micro Enterprises" of the "Return of VAT and Additional Taxes and Fees (Applicable to Small Taxpayers)" (or in column 11 if it is an individual industrial or commercial household). (In case of individual industrial and commercial households, column 11 should be filled in as "Sales not reaching the starting point"). If there are no other tax-exempted items, there is no need to fill in the Detailed VAT Declaration Form for VAT Reduction and Exemption.　　　　

12. I am a small-scale taxpayer dealing with motorcycle sales, with monthly sales of less than 100,000 yuan, can I still issue tax-exempt VAT invoices as in 2022?

Answer: Article 1 of the Announcement of the Ministry of Finance and the State Administration of Taxation on Clarifying the Policies on Reduction and Exemption of Value-added Tax and Other Policies for VAT Small-Scale Taxpayers (No. 1 of 2023) stipulates that, from Jan. 1, 2023 to Dec. 31, 2023, small-scale taxpayers of VAT with a monthly sales of less than 100,000 yuan (inclusive of this number) are exempted from the levying of value-added tax (VAT).

Small-scale taxpayers selling motor vehicles can enjoy the tax exemption policy in accordance with the above provisions, and issue special VAT invoices with the word "motor vehicle" in the upper left corner and the tax rate column as "tax-free".

13. I am a catering company, which has been enjoying the 15% VAT credit policy for living service industry, and at the end of 2022, there is still a balance of 100,000 yuan of VAT credit not yet deducted, and a new VAT credit policy has been introduced recently, so can the balance of last year's VAT credit not yet deducted continue to be deducted this year?

Answer: The Announcement of the Ministry of Finance and the State Administration of Taxation on Clarifying the Policies of Reducing and Exempting Value-added Tax for Small-scale Taxpayers of Value-added Tax (No. 1 of 2023) stipulates that taxpayers should apply the policy of adding and deducting credit 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 Policies of the Value-added Tax Reform (No. 39 of 2019), and the Notice on the Deepening of the Value-added Tax Reform of the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs of the PRC. No. 39),

Announcement of the Ministry of Finance and the State Administration of Taxation on Clarifying the Policy of Adding and Offsetting Value-added Tax 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 additive credits within the validity period of the additive credit policy. After the expiration of the policy, the taxpayers will no longer accrue the extra credit, and the balance of the extra credit will cease to be deductible.

14. I am a service company, please ask the recent introduction of the addition of credit policy, productive service industry taxpayers, refers to the provision of postal services, telecommunication services, modern services, life services to obtain sales accounted for the proportion of all sales of more than 50% of the taxpayer. Taxpayers in the living service industry refer to those taxpayers whose sales made by providing living services account for more than 50% of all sales. What is the definition of living services in these two policies? How should I choose to apply the different additions and deductions policy?

A: The definition of living services in the two policies is the same. Article 7 of the Announcement of the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs on Relevant Policies on Deepening Value-added Tax Reform (No. 39 of 2019) stipulates that the specific scope of living services is in accordance with the Notes on Sales of Services, Intangible Assets, and Real Estate (issued by Caixin [2016] No. 36). The Notes on Sale of Services, Intangible Assets, and Real Estate stipulate that life services refer to all types of service activities provided to meet the daily life needs of urban and rural residents. It includes cultural and sports services, education and medical services, tourism and entertainment services, catering and accommodation services, residents' daily services and other living services. After the taxpayer determines the application of the additive credit policy, no further adjustment will be made within the current year, and the applicability of the policy in subsequent years will be determined based on the calculation of the previous year's sales.

If the proportion of sales made by your company in the previous year in the provision of daily life services to all sales has exceeded 50%, you can apply the additive credit policy with a 10% additive credit ratio; if the proportion of sales made by your company in the previous year in the provision of daily life services to all sales has not exceeded 50% but the total proportion of sales made by your company in the provision of the four services, namely, postal services, telecommunication services, modern services, and daily life services, has not exceeded 50%. If your company's sales of postal services, telecommunication services, modern services, and living services do not exceed 50% of all sales, but the total sales of the four services accounted for more than 50% of all sales, then you can apply the 5% bonus and credit policy as stipulated.