Previously, the key tax for the catering industry was the business tax, which had a rate of 5%. According to the Pilot Program for Conversion of Business Tax to Value-added Tax announced in 2021 and the projections of a number of industry insiders, after the catering industry is included in the scope of the conversion, the tax rate for the usual taxpayers may be adjusted to 6%, while the small taxpayers may be subjected to a comprehensive levy rate of 3%.
In fact, most of the restaurants all to be categorized as small-scale taxpayers, after the camping reform, the combined levy rate of these restaurants may be reduced to 3%. Moreover, many of the catering industry are all self-employed, and business tax and value-added tax all have a starting point, monthly sales revenue does not exceed 30,000 yuan of restaurants, in the past exempted from value-added tax, will continue to be exempted from value-added tax in the future.
And for the usual taxpayers, if the tax rate is adjusted from 5% to 6%, does it mean an increase in tax burden. Theoretically, sales tax is a step-by-step tax, which you have to pay as long as you are in business, regardless of whether you are making a profit or losing money. The VAT is based on the value-added part of the goods or services tax, part of the fixed assets purchase cost is able to deduct, so the actual tax burden should be reduced.
March 5 this year, made a government work report, which mentioned the camp to increase. The original policy: all aspects of the implementation of the "camp to increase", from May 1, the pilot scope will be expanded to the construction industry, real estate industry, financial services, living services, and all enterprises to add real estate value-added tax included in the scope of the deduction to ensure that all sectors of the tax burden is only reduced or not increased. Among them, the catering industry is categorized under the living service industry.
So, how much will the "camp change" reduce the tax burden. For example, for a small-scale taxpayers, the integrated levy rate from 5% down to 3%, compared to the current tax burden, "camp to increase" after the tax burden will certainly be reduced. And usually taxpayers 6% VAT rate even if compared to the previous 5% business tax rate has increased, but because of the ability to take input tax credits, the tax burden change is not so sure, the key lies in the "cost" can be subtracted from how much.
The State Administration of Taxation on the small-scale taxpayers exempted from VAT policy related to the administration of the announcement (State Administration of Taxation Announcement No. 4 of 2019) stipulates that: small-scale taxpayers incur VAT taxable sales behavior, the total monthly sales do not exceed 100,000 yuan (to a quarter for a tax period, the quarterly sales do not exceed 300,000 yuan, the same hereinafter), exempted from the value-added tax. Only small-scale VAT taxpayers can apply the above VAT exemption preferential policies, including small-scale VAT taxpayers of catering enterprises, the amount of sales is limited, the amount of tax exemption within the amount of tax, over the amount of normal tax payment.