The tax rate for general taxpayers is 6%, and 3% for small taxpayers.

Accommodation services are exempted from value-added tax (VAT), can they be offset against input tax

Referring to the Circular of the Ministry of Finance and the State Administration of Taxation on the VAT Policies on the Input Tax Credit for Leased Fixed Assets (Cai Shui [2017] No. 90), since January 1, 2018, taxpayers have been renting fixed assets and immovable assets, which are used in both general taxable items and simple taxable items, and have been exempted from VAT. If the taxpayer rents fixed assets or real estate, which are used for both general tax calculation method taxable items and simple tax calculation method taxable items, VAT-exempted items, collective welfare or personal consumption, the input tax amount is allowed to be fully deducted from the output tax amount.

If the company's income during the epidemic is all exempted from VAT, then the input tax on rent is not deductible, but if there are other taxable incomes at the same time, then the input tax on rent can be used for deduction.

Can hotels only enjoy tax exemption for catering services

Article 5 of the Announcement of the State Administration of Taxation (SAT Announcement No. 8 of 2020) stipulates that taxpayers shall be exempted from value-added tax (VAT) on income derived from the provision of living services. The specific scope of living services, in accordance with the "sale of services, intangible assets, real estate notes" (Cai Shui [2016] No. 36 issued). Life service refers to all kinds of service activities to meet the needs of urban and rural residents in their daily lives, including cultural and sports services, education and medical services, tourism and entertainment services, catering and lodging services, residents' daily services and other life services. Accommodation services and catering services are two taxable activities that belong to the scope of living services.

Article 48 of the Measures for the Implementation of the Pilot Program for the Conversion of Business Tax to Value-added Tax (Annex 1 of Cai Shui [2016] No. 36) stipulates that taxpayers who have applied tax exemptions and reductions to their taxable behaviors can give up the exemptions and reductions, and pay the value-added tax in accordance with the regulations. After waiving the tax exemption or reduction, the taxpayer shall not apply for the tax exemption or reduction again within 36 months.

So the hotel can choose to enjoy the VAT exemption for catering services in accordance with the above provisions, and at the same time waive the VAT exemption for lodging services, and once waived, it cannot apply for VAT exemption for lodging services within 36 months.

The answer to the question of what is the tax rate of accommodation is here, and it can be seen that it is also based on the type of enterprise to distinguish between small taxpayers and general taxpayers in the invoicing of the tax rate will be different. In addition, not only the accommodation services will be based on different types of enterprises and determine the tax rate, other industries are also the same.