According to the Provisional Regulations on Business Tax, the business tax rate of catering industry is 5% according to the taxable items of service industry.
Business tax is an in-price tax, and the business tax to be paid is calculated by directly multiplying the turnover by the business tax rate.
According to the provisions of Articles 6, 7 and 8 of the Detailed Rules for the Implementation of the Provisional Regulations on Business Tax, mixed sales and part-time operations should be accounted for separately. If there is no separate accounting, the tax bureau will check whether it is necessary to pay business tax or value-added tax or even both taxes.
In other words, in a small restaurant, your catering service is subject to business tax, and if you still sell some goods, the sales of this goods are subject to value-added tax.
According to the Announcement on Issues Related to Exemption of Small and Micro Enterprises from Value-added Tax and Business Tax, People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.57 (20 14), business tax and value-added tax can be exempted if the monthly turnover does not exceed 30,000.