The catering industry has to pay value-added tax on the food it sells. According to the relevant laws and regulations, units and individuals should pay value-added tax for selling goods, processing or repairing services, selling services, intangible assets, real estate and imported goods in China.

legal ground

Article 1 of the Provisional Regulations of People's Republic of China (PRC) Municipality on Value-added Tax

Units and individuals selling goods or processing, repair and replacement services (hereinafter referred to as services), services, intangible assets, real estate and imported goods within the territory of People's Republic of China (PRC) are taxpayers of value-added tax and shall pay value-added tax in accordance with these regulations.

essay

Taxpayers engaged in projects with different tax rates shall separately account for the sales of projects with different tax rates; If the sales volume is not accounted for separately, a higher tax rate shall apply.