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What is the catering tax rate during the epidemic?

what is the catering tax rate during the epidemic

the Ministry of finance and State Taxation Administration of The People's Republic of China issued the announcement on tax policies related to supporting the prevention and control of pneumonia infected by novel coronavirus (Announcement No.8 of the Ministry of Finance and the State Administration of Taxation in 2121)

The specific scope of living services stipulated in Article 5 of Announcement No.8 shall be implemented in accordance with the Notes on Sales Services, Intangible Assets and Real Estate (No.36 of Caishui [2116]). Refers to all kinds of service activities 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 for residents and other life services. Catering services belong to the scope of life services. The income obtained according to the regulations can enjoy the policy of exemption from value-added tax.

Financial and tax treatment of food deterioration in catering enterprises during the epidemic period

Case overview: Auspicious Catering Service Co., Ltd. (hereinafter referred to as "Auspicious Company") is a large catering enterprise and a general taxpayer of value-added tax. In the Spring Festival of 2121, due to the infection of pneumonia in novel coronavirus, holiday orders were basically cancelled. A large number of food materials purchased before the holiday are moldy and deteriorated. Ask how to deal with the moldy and deteriorated food materials through finance and taxation.

Case analysis: The loss of food materials due to the epidemic is force majeure. Its financial and taxation treatment is as follows.

1. Accounting treatment

1. Before scrapping approval, accounting treatment should be carried out first.

Borrowing: profit and loss of pending property

Lending: raw materials <. Then carry it over to the corresponding account according to the examination and approval.

Debit: non-operating expenses

Loan: gains and losses of pending property

II. Tax treatment

Generally speaking, considering the tax-related matters of an economic business, the seller should consider value-added tax, enterprise income tax or personal income tax and stamp duty, and under special circumstances, it is also necessary to consider consumption tax, land tax increase and invoice issuance; Buyers need to consider VAT deduction, pre-tax deduction of income tax, stamp duty, and deed tax under special circumstances.

As far as the expired food of catering enterprises is concerned, the input and output of VAT, pre-tax deduction of corporate income tax and stamp duty should be considered.

1. Tax treatment of VAT

The loss caused by the expired food of catering enterprises (including the expired food at ordinary times) due to the epidemic situation is force majeure. The input value-added tax can be deducted, and it is not necessary to transfer out the input tax.

Policy basis: Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Comprehensively Pushing Forward the Pilot Project of Changing Business Tax to Value-added Tax (Caishui [2116] No.36)

Abnormal losses refer to the situation that goods are stolen, lost, moldy and deteriorated due to poor management, and goods or real estate are confiscated, destroyed or dismantled according to law due to violation of laws and regulations. "Goods are stolen, lost, moldy and deteriorated due to poor management" is stipulated in the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-added Tax, while "Goods or real estate are confiscated, destroyed or dismantled according to law due to violation of laws and regulations" is a new provision in the Pilot Implementation Measures for Changing Business Tax to VAT.

So far, Abnormal loss is defined in the "Implementation Measures for Pilot Project of Changing Business Tax to Value-added Tax".

The consequence of abnormal loss of taxpayers is that the input of goods or real estate cannot be deducted, and it needs to be transferred out.

Therefore, the loss of expired, moldy and deteriorated ingredients caused by the epidemic situation in Jixiang Company is force majeure, not abnormal loss, and its VAT input tax can be deducted. There is no need to transfer out the input tax.

2. Tax treatment of enterprise income tax

The loss of expired, moldy and deteriorated ingredients caused by the epidemic is a normal loss in the process of enterprise production, which can be deducted before enterprise income tax.

If an enterprise suffers from asset loss, it only needs to fill in the annual tax return of enterprise income tax, the List of Deduction and Tax Adjustment of Asset Loss, and no relevant information about asset loss is submitted. Relevant information shall be kept by the enterprise for future reference.

The enterprise shall completely keep relevant information on asset losses, and be responsible for the authenticity and legality of the information.

Inventory scrap, damage or deterioration loss shall be kept for future reference:

(1) Basis for determining the taxable cost of inventory;

(2) description and write-off information about inventory scrapping, damage, deterioration and salvage value within the enterprise;

(3) If the compensation of the responsible person is involved, there shall be a description of the compensation;

(4) If the loss is relatively large (it refers to accounting for more than 11% of the taxable cost of such assets of the enterprise, or reducing the taxable income of the current year and increasing the loss by more than 11%, the same below), it is recommended to have professional technical appraisal opinions or special reports issued by legally qualified intermediaries, etc.

3. Stamp duty

Scrapping of moldy and deteriorated ingredients due to the epidemic situation, It doesn't belong to the scope of the tax voucher of the Provisional Regulations on Stamp Duty of the People's Republic of China and its supporting documents, and stamp duty is not required.

The answer about the food and beverage tax rate during the epidemic period is here first. After enjoying the preferential tax policy, how to declare and fill in the declaration form, and what are the requirements when entering the account? If the finance thinks that the current ability is not enough to handle them well, you can now consult the accounting teacher directly through the website.