The Ministry of Finance? SAT Announcement on Tax Policies for Supporting the Prevention and Control of the Pneumonia Epidemic Infected by the New Coronavirus (Ministry of Finance and SAT Announcement No. 8 of 2020). SAT Announcement No. 8 of 2020), Article 5 provides that taxpayers shall be exempted from VAT on income derived from the provision of living services. The specific scope of living services shall be implemented in accordance with the Notes on Sales of Services, Intangible Assets and Real Estate (issued by Cai Shui [2016] No. 36). Living services refer to all kinds of service activities provided to meet the needs of urban and rural residents in their daily lives, including cultural and sports services, education and medical services, tourism and entertainment services, catering and accommodation services, residents' daily services and other living services. Your company can enjoy the relevant tax exemption policy according to the above VAT items.
Borrow: Accounts ReceivableLoan: Main Business IncomeTaxes Payable - VAT Payable (Output Tax)Borrow: Accounts ReceivableLoan: Main Business IncomeAccounting entries for VAT exemption of living services during the epidemicLoan: Taxes Payable - VAT PayableLoan: Other Earnings/Out-of-Business IncomeInput Tax Transfers OutLoan: Costs of Business/Raw Materials etc.Loan: Taxes Payable - VAT Payable (Input Tax Transfer Out)
This is the first time that you can enjoy the VAT exemption policy. Input Tax Transfer
How to account for restaurant invoices?
1. Catering invoices can be included in the "travel expenses"
Some companies have employees on business trips, there are cash allowances, and some companies are reimbursed according to the food and beverage invoices incurred during the employee's business trip. For employees on business trips during the catering invoices should be reasonably divided: if the employees on business trips, with the enterprise task to go to the banquet customers and other catering invoices, or should be included in the "business hospitality"; if the employee's personal business trips in the subsidies within the standard of consumption, should be included in the "travel expenses".
2. Catering invoices can be included in the "business hospitality"
Business hospitality refers to the needs of the enterprise for the operation of the business and the payment of entertainment costs, also known as the social entertainment costs, including catering, cigarettes, water, food, normal recreational activities, etc., but also includes business negotiations, product promotion, foreign liaison, PR contacts, meetings and receptions, reception, guest reception, etc., the costs incurred, such as hospitality meals, hospitality cigarettes, food and beverage, and the costs incurred. For example, hospitality meals, hospitality with cigarettes and tea, transportation costs.
3. Catering invoices can be included in the "employee welfare expenses"
According to the "State Administration of Taxation on the deduction of wages and salaries and employee welfare costs of enterprises notice" (State Taxation Letter [2009] No. 3) provides: "Third, on the deduction of employee welfare costs of the implementation of the provisions of the Regulations of the enterprise employee welfare costs of the provisions of article 40, including the following:
(1) Enterprises that have not yet implemented the separation of social functions, its internal welfare departments incurred equipment, facilities and personnel costs, including staff canteens, staff bathrooms, barber shops, medical clinics, nurseries, nursing homes and other collective welfare departments, equipment, facilities and maintenance costs and the welfare department staff wages and salaries, social insurance premiums, housing fund, labor costs, etc..
(2) Subsidies and non-monetary benefits for employees' health care, living, housing, transportation, etc., including medical expenses paid by the enterprise to employees for overseas medical treatment on official business, medical expenses for employees of enterprises that have not implemented medical care coordination, medical subsidies for employees' dependent immediate family members, subsidies for heating costs, heat-prevention and cooling costs for employees, subsidies for employees' difficulties, relief costs, subsidies for employees' canteens, and subsidies for employees' transportation. subsidies, etc.
(3) Other employee welfare expenses incurred in accordance with other provisions, including funeral subsidies, compassionate care expenses, family settlement expenses, home leave travel expenses, etc..."
In addition to these expenses, the following are the other employee welfare expenses incurred in accordance with other provisions, including funeral subsidies, compassionate care expenses, home settlement expenses, home leave travel expenses, etc."
In addition to the above should be included in the employee welfare costs. In the daily practice of the enterprise, often occurs on New Year's Day, such as the situation of the staff dinner, dining activities to participate in the personnel are all employees of the enterprise. In addition, there are employees field work or overtime work, etc., due to the inconvenience of employees to eat, the enterprise to provide employees with working meals. Should be included in the welfare costs. Here is for the employees, not for outsiders. Expenditures for outsiders are included in hospitality.
4. Catering invoices can be included in the "meeting costs"
Enterprises often hold a variety of meetings, inviting some customers, suppliers, employees and so on. As a conference fee, it must include the transportation, accommodation and catering for the conference, so there will be catering invoices in the conference fee. Pre-tax deduction is not a problem, however, will generally be required to provide the meeting related to the meeting notice, meeting sign-in book and other information that can prove the authenticity of the conference fee. Such as meeting notices (including content: meeting time, meeting arrangements, meeting content, meeting standards, etc.), meeting minutes and other information.
5. Whether the meal allowance is subject to personal income tax
General taxpayers, catering tax exemption how to account for,