In order to support the prevention and control of pneumonia caused by novel coronavirus infection, the ministry of finance and the state administration of taxation recently issued the "announcement on tax policies for the prevention and control of pneumonia caused by novel coronavirus infection" (announcement no. 8 in 2020 by The State Administration of Taxation of the Ministry of Finance).
Announcement key content: the enterprise provides the public transportation service, the life service and the resident essential life material express delivery service income to be exempted from the value-added tax.
【 enjoy subject 】 Provide public transport services, life services, and provide residents with essential daily supplies Courier delivery services enterprises.
【preferential content】 Starting from January 1, 2020, enterprises will be exempted from value-added tax for their income from providing public transport services and daily life services, as well as providing residents with express delivery services of essential daily supplies. The specific scope of public transport services shall be implemented in accordance with the provisions on the pilot project of replacing business tax with VAT (Finance and Taxation [2016] no. 36).
The specific scope of life service and express delivery service shall be implemented in accordance with the "notes on sales service, intangible assets and real estate" (Finance and Taxation [2016] no. 36). Shortly after the announcement, Fintegrity's clients, small and medium-sized business owners from a variety of industries, arrived with their questions. As the editor in chief of Fintegrity, have sorted out and answered several questions that are closely related to everyone around this policy:
Q1: I run a Courier company and am now a small-scale taxpayer. Prior to the monthly sales have been less than 100,000 yuan, enjoy small and micro enterprises VAT exemption policy. Recently affected by the outbreak of new crown pneumonia, the online purchase volume increased, and our sales in January and February have exceeded 300,000 yuan. so we can't enjoy the tax exemption now?
A: According to the notice on the implementation of preferential tax reduction and exemption policy for small and micro enterprises (no. 13 [2019]), from January 1, 2019 to December 31, 2021, small-scale VAT taxpayers with monthly sales of less than 100,000 yuan will be exempted from VAT. Article 5 of the announcement stipulates that taxpayers' income from providing public transportation services and daily life services, as well as providing residents with express delivery services of necessary daily necessities, shall be exempted from VAT.
The specific scope of express delivery shall be implemented in accordance with the "notes on sales services, intangible assets and real estate" (Finance and Taxation [2016] no. 36). This policy shall be implemented from January 1, 2020, and the deadline shall be separately notified according to the epidemic situation. The income obtained from providing express delivery service of essential daily supplies for residents refers to the income obtained from providing express delivery service for residents. Therefore, your company in January to February to obtain the above distribution service income, regardless of whether its sales more than 100,000 yuan can be in accordance with the 8th announcement of the relevant policy to enjoy the exemption of value-added tax.
Q2: Can the shuttle bus service enjoy VAT exemption?
A: "the state administration of taxation on comprehensive change opened the business tax paid VAT pilot notice (Finance and Taxation [2016] 36) in annex 2 of the tax reform the regulation of paid VAT pilot related matters" item 1 of paragraph (6) of the first article, public transportation services, including wheel passenger ferry, bus, subway, light rail transit, taxi, long-distance passenger transport, bus. Shuttle bus refers to the land transport service for transporting passengers which operates on a fixed route and at a fixed time and stops at a fixed station. Therefore, the shuttle bus service belongs to the scope of public transport services, can enjoy the exemption of value-added tax.
Q3: Can property management service enjoy VAT exemption?
A: "the state administration of taxation on comprehensive change opened the business tax paid VAT pilot notice (Finance and Taxation [2016] 36) in attachment 1" business tax changed the measures for the implementation of paid VAT pilot after the attached "sales services, intangible assets, real estate annotation" paragraph (7) the first article, service life is to meet the demand of urban and rural residents' daily life to provide all kinds of service activities. It includes cultural and sports services, educational and medical services, tourism and entertainment services, catering and accommodation services, residents' daily services and other living services.
Article 1 according to item (6) of article 1, modern services refer to business activities providing technical and intellectual services around manufacturing, cultural and modern logistics industries. It includes research and development and technical services, information technology services, cultural and creative services, logistics assistance services, rental services, authentication consulting services, radio and television services, business assistance services and other modern services.
Business auxiliary services include enterprise management services, brokerage services, human resources services, security and protection services. Among them, enterprise management services refer to the business activities that provide such services as headquarters management, investment and asset management, market management, property management and daily comprehensive management. Accordingly, property management service belongs to contemporary service limits, do not belong to life service limits, offer property management service cannot enjoy exempt value added tax privilege.
Q4: Can online training enjoy VAT exemption?
A: "The State Administration of Taxation on comprehensive change opened the business tax paid VAT pilot notice (Finance and Taxation [2016] 36) in attachment 1" business tax changed the measures for the implementation of paid VAT pilot after the attached "sales services, intangible assets, real estate annotation" paragraph (7) the first article, service life is to meet the demand of urban and rural residents' daily life to provide all kinds of service activities. It includes cultural and sports services, educational and medical services, tourism and entertainment services, catering and accommodation services, residents' daily services and other living services.
Educational services refer to the business activities of providing academic education services, non-academic education services and educational auxiliary services. Non-academic education services, including pre-school education, various types of training, lectures, lectures, lectures, etc. Accordingly, on the net groom belongs to life service - education medical treatment service - the scope that does not have record of formal schooling education service, offer on the net groom service to be able to enjoy exempt from pay value added tax preferential policy.
Q5: Can online car-hailing services enjoy VAT exemption?
A: The Tax Service Platform of State Administration of Taxation 12366 released the "support for the prevention and control of the new coronavirus pneumonia epidemic related value-added tax, consumption tax preferential policies immediate response (phase I)" to the eighth question "our company is an online car-hailing company, through the organization of self-operated vehicles and other vehicles to provide passenger services.
May I ask whether our company can enjoy the VAT exemption policy for public transport services?"
The answer is as follows and can be enjoyed. Article 5 of the announcement of tax policies of the state administration of taxation of the ministry of finance on supporting the prevention and control of pneumonia caused by the new coronavirus infection (announcement of the state administration of taxation of the ministry of finance no. 8 in 2020, hereinafter referred to as announcement no.
The specific scope of public transport services shall be implemented in accordance with the provisions on the pilot project of replacing business tax with VAT (Finance and Taxation [2016] no. 36). Public transport services, including ferry, bus passenger transport, subway, urban light rail, taxi, long-distance passenger transport, shuttle bus. Relying on the Internet service platform, the online taxi reservation service provided by qualified vehicles and drivers falls within the scope of the above public transport services.
Accordingly, the income that your company provides network to book a taxi service to obtain, can enjoy according to the relevant regulation of 8 announcement to be exempted from pay added tax preferential policy. According to the above replies, the provision of online ride-hailing service can enjoy the exemption of value-added tax according to the "public transport service".
Q6: The life service enterprises are enjoying the 15% extra credit policy. Can we give up the VAT exemption during the epidemic?
A: "the state administration of taxation on comprehensive change opened the business tax paid VAT pilot notice (caishui [2016] 36) in attachment 1" business tax changed the measures for the implementation of paid VAT pilot article 48, taxable taxpayers tax exemption or reduction provisions shall be applicable to the behavior, can give up tax exemption or reduction, pay value-added tax in accordance with the provisions of the measures. After the waiver of tax exemption or reduction, no application for tax exemption or reduction shall be made within 36 months. Therefore, the life service enterprises that are enjoying the 15% additional credit policy can waive the VAT exemption during the epidemic period. Once waived, they are not allowed to apply for the VAT exemption for life services within 36 months.
Q7: The hotel also offers catering and accommodation. Can you choose to enjoy the duty-free preference for catering service and give up the duty-free preference for accommodation service?
A: The sixth question on the tax preferential policies for the prevention and control of epidemic diseases released by the 12366 tax service platform of the state administration of taxation. Considering that the country has issued the VAT exemption policy for life service during the epidemic, considering the actual business model of our company, can we give up the tax exemption policy for accommodation service and only enjoy the tax exemption policy for catering service?" The answer is as follows:
Article 5 of the announcement of tax policies of the state administration of taxation of the ministry of finance on supporting the prevention and control of the pneumonia epidemic caused by the new coronavirus infection (announcement of The State Administration of Taxation of the Ministry of Finance no. 8 in 2020) stipulates that the income obtained from the provision of life services of taxpayers shall be exempted from VAT.
The specific scope of life services shall be implemented in accordance with the "notes on sales services, intangible assets and real estate" (Finance and Taxation [2016] no. 36). Life services refer to all kinds of service activities provided to meet the daily needs of urban and rural residents, including cultural and sports services, education and medical services, tourism and entertainment services, catering and accommodation services, residents' daily services and other life services. Accommodation services and catering services, two taxable activities, are within the scope of living services.
Article 48 of the measures for the implementation of the pilot project of replacing business tax with value-added tax (Finance and Taxation [2016] no. 36 annex 1) stipulates that taxpayers who have taxable ACTS that are applicable to the provisions on tax exemption or reduction may waive the exemption or reduction and pay VAT according to the provisions. After the waiver of tax exemption or reduction, no application for tax exemption or reduction shall be made within 36 months.
Your hotel can according to the above provisions to choose to enjoy the food and beverage service VAT exemption, at the same time give up to enjoy the accommodation service VAT exemption, once given up, 36 months can not apply for the accommodation service VAT exemption. Therefore, the hotel concurrently manages the catering and the accommodation, may choose to enjoy the catering service to exempt from the value-added tax preferential, at the same time waives to enjoy the accommodation service to exempt from the value-added tax, once waives, can not apply for the accommodation service to exempt from the value-added tax within 36 months.
Fintegrity's editor said
The deadline for the application of the above preferential policies will be separately announced according to the epidemic situation. (it is estimated that when the epidemic is over, the policy will end at any time, and now the enterprises are gradually returning to work, in February, the enterprises are basically not open for business is not available, in March, April when everyone declare it will be available!)