when the hotel industry levies business tax, taxpayers, regardless of their business scale, should calculate and pay business tax at the rate of 5% based on all their income (sales), including room rates and service fees. Taxpayers in the hotel industry can be divided into two categories after the VAT is changed:

The first category, hotels with annual sales below 5 million yuan, are classified as small-scale VAT taxpayers. According to the policy, this part of taxpayers apply the simple taxation method to calculate and pay the value-added tax at the rate of 3% (i.e., sales ×3%), which directly reduces their tax burden by about 41% compared with the original business tax rate of 5%.

in the second category, hotels with annual sales of more than 5 million yuan are classified as general VAT taxpayers. This part of taxpayers is subject to the VAT rate of 6%, which is levied outside the price and the business tax is levied inside the price. Therefore, the VAT rate of 6% is calculated according to the business tax caliber, which is equivalent to the business tax burden level of 5.66%. That is to say, even if there is no input tax to be deducted, the tax burden of the general taxpayer of hotel value-added tax after the reform of the camp is only 1.66 percentage points higher than that under the business tax system. After the reform, the hotel's material procurement, equipment procurement, service procurement, real estate purchase and lease, office expenses, etc. can all be deducted. Generally speaking, the tax burden of taxpayers has generally declined to varying degrees.

for example, a hotel is a general taxpayer of value-added tax, with sales revenue (including tax) of RMB 1.16 million in the current month, and the cost of purchasing equipment and materials of RMB 1.17 million in the same period, and the input tax indicated on the special VAT invoice is RMB 1.7 million. Under the business tax system, the business tax payable by taxpayers in the current period is: 116× 5% = 53,111 yuan; Under the VAT system, the current VAT payable by taxpayers is: 116 ÷ (1+6%) × 6%-1.7 = 43,111 yuan. At the same income level, after the reform, the value-added tax will be less than the business tax by 1 million yuan.