In China, the VAT rate of lease invoices issued by natural persons is usually 3% or 5%, depending on the type of taxpayers issuing invoices and the type of lease services.
I. Taxpayer categories
In China, taxpayers are divided into general taxpayers and small-scale taxpayers. The general taxpayer's VAT rate is usually 17%, but the input tax can be deducted. The value-added tax rate of small-scale taxpayers is usually 3%, and the input tax cannot be deducted. Therefore, when a natural person issues a lease invoice as a small-scale taxpayer, its VAT rate is 3%.
Two. Types of rental services
For real estate leasing services, such as house leasing, the applicable tax rate is11%; For tangible movable property leasing services such as car leasing and equipment leasing, the applicable tax rate is 17%. But the value-added tax rate of individual rental housing is 5%, and the monthly rental income does not exceed 30 thousand yuan (including 30 thousand yuan), which can be exempted from value-added tax.
Third, the requirements for issuing invoices.
When issuing lease invoices, natural persons need to provide relevant supporting documents such as lease contract and ID card, and abide by the relevant regulations and requirements of tax authorities. If a natural person does not understand the relevant regulations and requirements, he can consult the local tax authorities or seek the help of professionals.
1. If a natural person rents a house, the tax payable shall be calculated at the tax rate of 5% minus 1.5%. Taxable amount = tax-included output amount /( 1+5%)× 1.5%.
Two, natural persons rent real estate (excluding housing), according to the tax rate of 5% to calculate the tax payable. Taxable amount = tax-included output amount /( 1+5%)×5%.
Three, natural persons rent machinery and equipment, vehicles and other property, the tax payable shall be calculated at the rate of 3%.
4. Leased land use right, the tax rate is 1 1%.
Five, units and individuals to rent other real estate (excluding personal rental housing), the tax rate is 5%.
Six, individual rental housing, tax payable should be calculated at the rate of 5% minus 1.5%.
Seven, individuals will buy less than 2 years of housing rental, in accordance with the tax rate of 5% to pay the full value-added tax; Individuals who rent out houses that have been purchased for more than 2 years (including 2 years) shall be exempted from value-added tax. The above-mentioned housing should be the only housing purchased by individuals in this area.
To sum up:
The VAT rate of lease invoices issued by natural persons depends on the taxpayer type and the lease service type. Natural persons, as small-scale taxpayers, apply the VAT rate of 3%, while the VAT rate of individuals renting houses is 5%. Natural persons need to comply with relevant regulations and requirements, provide necessary supporting documents and issue legal lease invoices.
Legal basis:
Article 3 of the Value-added Tax Law of People's Republic of China (PRC) stipulates that units and individuals that sell goods or provide processing, repair and repair services and import goods within the territory of People's Republic of China (PRC) are taxpayers of value-added tax and shall pay value-added tax in accordance with the provisions of this law.
Article 12 of the Regulations for the Implementation of the Value-added Tax Law of People's Republic of China (PRC) stipulates that small-scale taxpayers selling goods or taxable services shall adopt a simple method to calculate the tax payable according to the sales volume and the collection rate, and shall not deduct the input tax. Calculation formula of tax payable: tax payable = sales volume × collection rate. Among them, the collection rate is generally 3%.