The catering industry is one of the life service industries included in the scope of "VAT reform" in China. Before the completion of the "VAT reform", it belongs to business tax taxable services with a tax rate of 5%. After the "VAT reform", the general taxpayer tax rate in the catering industry is 6%, while the comprehensive tax rate applicable to small-scale taxpayers is 3%.

catering service belongs to the life service tax item in the value-added tax, and the life service industry also has a tax exemption policy.

what does the specific life service industry include?

cultural and sports services: cultural services and sports services.

education and medical services: education services-medical services such as academic education, non-academic education and educational assistance.

tourism and entertainment services: tourism services and entertainment services.

catering and accommodation services: catering and accommodation services.

residents' daily services and other life services.

Legal basis

Provisional Regulations of the People's Republic of China on Value-added Tax

Article 2 VAT rate:

(1) Taxpayers selling goods, services, tangible chattel rental services or imported goods, unless otherwise stipulated in Items 2, 4 and 5 of this article, the tax rate is 17%.

(2) Taxpayers sell transportation, postal services, basic telecommunications, construction and real estate leasing services, sell real estate, transfer land use rights, and sell or import the following goods at a tax rate of 11%:

1. Agricultural products such as grain, edible vegetable oil and edible salt;

2. Tap water, heating, air conditioning, hot water, gas, liquefied petroleum gas, natural gas, dimethyl ether, biogas and coal products for residents;

3. Books, newspapers, magazines, audio-visual products and electronic publications;

4. Feed, chemical fertilizer, pesticide, agricultural machinery and plastic film;

5. Other goods specified by the State Council.

(3) unless otherwise stipulated in items 1, 2 and 5 of this article, the tax rate for taxpayers selling services and intangible assets is 6%.

(4) taxpayers export goods at zero tax rate; However, unless otherwise stipulated by the State Council.

(5) Domestic units and individuals selling services and intangible assets within the scope specified by the State Council across borders shall have a tax rate of zero. The adjustment of tax rate is decided by the State Council. "Provisional Regulations on Value-added Tax" Article 12 The collection rate of value-added tax for small-scale taxpayers is 3%, unless otherwise stipulated by the State Council.