conditionally exempt from value-added tax.

according to announcement No.1 of the State Administration of Taxation in 2123, small-scale taxpayers are exempt from value-added tax if they apply to issuing ordinary tickets at a rate of 3% and their quarterly sales do not exceed 311,111 yuan.

Therefore, small-scale taxpayers' catering industry is exempt from value-added tax if its quarterly sales do not exceed 311,111 yuan.