1. Caishui [20 1 6] No.36 Annex1:According to Article 10 of the Implementation Measures for the Pilot Reform of Business Tax to VAT, the sale of labor services, intangible assets or real estate refers to the paid provision of labor services and the paid transfer of intangible assets or real estate. However, the following non-business activities are excluded: ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
2. Letter of State Taxation Administration of The People's Republic of China Inspection Bureau on Special Inspection of Value-added Tax Reform (Tax Comprehensive Letter [20 15] 174): "On the issue of providing free calls to internal staff: According to the relevant provisions of Article 9 of the Pilot Implementation Measures for Changing Business Tax to Value-added Tax, the taxable services provided by the unit to employees belong to taxable services provided in non-business activities, and these services should not be regarded as sales.
3. Caishui [20 1 6] No.36 Annex1:Article 27 of the Implementation Measures for the Pilot Reform of Business Tax to VAT stipulates that the input tax of the following items shall not be deducted from the output tax:
(1) Goods purchased, processing, repair and replacement services, services, intangible assets and real estate used for simple taxable items, items exempted from value-added tax, collective welfare or personal consumption. The fixed assets, intangible assets and real estate involved only refer to the fixed assets, intangible assets (excluding other equity intangible assets) and real estate dedicated to the above projects.
Taxpayers' social and entertainment consumption belongs to personal consumption.
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According to the above regulations, the catering services provided by catering enterprises for employees free of charge belong to "services provided by units or individual industrial and commercial households for employees", and State Taxation Administration of The People's Republic of China interprets it as "self-service", which belongs to non-business activities and is not subject to value-added tax. At present, the value-added tax deduction adopts the "exclusion method", as long as it does not belong to the situation that the input tax cannot be deducted, it can be deducted. Because the items that taxpayers do not levy VAT are not deductible, catering enterprises provide catering services for employees free of charge, and the corresponding input tax does not need to be transferred out.
Problem extension: catering enterprises distribute self-produced food as welfare to employees. How to deal with VAT?
Article 9 of the Finance and Taxation Document [20 16] 140 stipulates that the take-away food sold by taxpayers with catering services shall be subject to VAT according to "catering services". The goods and services tax department of the General Administration explained that the take-away food sold by catering enterprises is subject to the same value-added tax policy as the food in the store, and the value-added tax is paid uniformly according to the catering services provided. "Takeaway food" only refers to the food that catering enterprises participate in the production and processing. In other words, providing self-produced food is providing catering service. It can be seen that the distribution of self-produced food to employees by catering enterprises is still a "self-service" non-business activity, which is not within the scope of VAT taxation and cannot be recognized as sales according to "self-produced goods as employee benefits". At the same time, the corresponding input tax does not need to be transferred out.