VAT adopts different tax rates according to different industries and sales targets. According to the Provisional Regulations of People's Republic of China (PRC) on Value-added Tax, the applicable tax rate for small-scale taxpayers is 3% or 5%. For the sale of fixed assets for personal use, the collection rate is 2%. Special VAT invoices can only be issued to the buyer, not applicable to individual consumers or tax exemption regulations.
Small-scale taxpayers can apply 3% or 5% VAT according to their taxable behavior of providing VAT, and cannot issue special VAT invoices at the rate of 6%. Value-added tax is simply levied on small-scale taxpayers, and the tax rate applicable to small-scale taxpayers is called the levy rate. Small-scale taxpayers who sell their used fixed assets are subject to VAT at a reduced rate of 2%. Only ordinary invoices can be issued, and the tax authorities may not issue special invoices for value-added tax.
Provisional Regulations of People's Republic of China (PRC) Municipality on Value-added Tax
second
VAT rate:
(1) Unless otherwise specified in items 2, 4 and 5 of this article, the tax rate of taxpayers selling goods, services, tangible movable property leasing services or imported goods 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 the tax rate of 1 1%:
1. Agricultural products such as grain, edible vegetable oil and edible salt;
2 residents tap water, heating, air conditioning, hot water, gas, liquefied petroleum gas, natural gas, dimethyl ether, biogas, coal products;
3 books, newspapers, magazines, audio-visual products and electronic publications;
4. Feeds, fertilizers, pesticides, agricultural machinery and plastic films;
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 labor services and intangible assets is 6%.
(4) taxpayers export goods at zero tax rate; However, unless otherwise stipulated by the State Council.
(five) domestic units and individuals cross-border sales of services and intangible assets within the scope of the State Council, the tax rate is zero.
The adjustment of tax rate is decided by the State Council. Article 21
For taxable sales, the taxpayer shall issue a special VAT invoice to the buyer who requests the special VAT invoice, and indicate the sales amount and output tax amount respectively on the special VAT invoice.
Under any of the following circumstances, a special VAT invoice shall not be issued:
(a) the buyer of taxable sales behavior is an individual consumer;
(2) The tax exemption clause applies to taxable sales.
The right to issue invoices and the tax rate of small-scale taxpayers are restricted to some extent. According to relevant laws and regulations, small-scale taxpayers can issue ordinary invoices, but they cannot issue special VAT invoices. In addition, the tax rate of small-scale taxpayers is generally 3% or 5%, not 6%. The determination of specific tax rates may be influenced by regions and industries. Therefore, according to the identity of small-scale taxpayers and relevant regulations, there are certain restrictions on their invoicing and tax rates. It is suggested that small-scale taxpayers should carefully understand relevant laws and policies before issuing invoices to ensure compliance.
Legal basis:
Law of People's Republic of China (PRC) on the Administration of Tax Collection (revised on 20 15);
Chapter VI Supplementary Provisions Article 89 Taxpayers and withholding agents may entrust tax agents to handle tax matters on their behalf.