Labor dispatch service belongs to human resource service in business auxiliary service under modern service. The applicable tax rate for general taxpayers providing labor dispatch services is 6%, and the applicable levy rate for small-scale taxpayers is 3%.

Taxpayers providing labor dispatch services can choose either full taxation or differential taxation. The so-called differential taxation means that the full price and out-of-priced expenses received are deducted from the wages and welfare fees paid to the dispatched employees on behalf of the employing units and the balance of the sales after applying for the social insurance and housing provident fund for the dispatched employees. Under differential taxation, the applicable levy rate for both general taxpayers and small-scale taxpayers is 5%.

Where a general taxpayer chooses the full taxation method, the general taxation method is applied, i.e., VAT payable = output tax - input tax = ex-tax sales (all ex-tax price and out-of-prices charges received) x 6% - input tax. That is, under the full taxation method, the input tax obtained by general taxpayers can be offset against VAT.

General taxpayers choosing differential taxation are subject to simplified tax calculation, and the amount of VAT payable is equal to the non-taxable sales (difference) × 5%

Small taxpayers choosing either full taxation or differential taxation pay VAT according to the simplified tax calculation method, with only different tax bases and different tax rates applicable to them.

Full taxation: taxable amount = sales excluding tax (all ex-tax price and out-of-prices expenses) × 3%

Differential taxation: taxable amount = sales excluding tax (difference) × 5%

Note that under differential taxation, the difference (i.e., salary, welfare and social insurance and housing fund paid to the dispatched employees) shall not be issued special VAT invoices. ) shall not be issued special VAT invoices.

Labor outsourcing is generally divided into construction service outsourcing, cleaning service outsourcing, transportation service outsourcing, and catering service outsourcing according to the specific outsourcing business.

General taxpayers provide outsourcing of construction labor services with an applicable tax rate of 9%; outsourcing of cleaning services with an applicable tax rate of 6%; outsourcing of transportation services with an applicable tax rate of 9%; and outsourcing of catering services with an applicable tax rate of 6%. VAT payable = sales (excluding tax) x applicable tax rate - input tax.

Small taxpayers providing outsourcing of the above four types of labor services are subject to an applicable tax rate of 3%, and the amount of VAT payable = sales (excluding tax) × 3%

According to the Announcement of the Ministry of Finance and the State Administration of Taxation on the Exemption of Small-Scale Taxpayers from the Levy of Value-Added Tax (Announcement of the Ministry of Finance and the State Administration of Taxation No. 15 of 2022), between April 1, 2022, and December 31, 2022, small-sized taxpayers are exempted from the levy of value-added tax (VAT). December 31, VAT small-scale taxpayers enjoy the preferential policy of exempting from VAT the provision of taxable sales to which the 3% levy rate applies. Note that in order to enjoy the exemption policy, no special VAT invoice shall be issued, but ordinary invoice can be issued with the tax rate column as "tax exemption"; if special VAT invoice is issued with the tax rate column as "3%", the VAT shall be paid in accordance with the normal VAT rate of 3%, and shall not be entitled to the preferential policy of VAT exemption. If the special VAT invoice is issued with "3%", the VAT will be paid according to the normal VAT rate of 3% and no exemption will be granted.

The above is a 91 business network (www.91kaiye.cn) editor for you to organize the content of the tax treatment of labor outsourcing and labor dispatch, I hope to help you.