1, agency industry
Agency industry, refers to the business of handling the entrusted matters on behalf of the principal, including the purchase and sale of goods on behalf of the agent, import and export, introduction services, other agency services.
1)? On behalf of the purchase and sale of goods, refers to the entrusted purchase of goods or sales of goods, according to the actual purchase or sale of the amount of settlement and collect commission business.
2)? Import and export on behalf of, is entrusted with the import and export of goods or services business.
3)? Introduction services, refers to the business of intermediaries to introduce the two sides to negotiate transactions or other matters.
4)? Other agency services, refers to the business entrusted with other matters other than those listed above.
5)? Financial brokerage and the newspaper distribution business of the postal service are not taxed under this tax item.
2. Inns
Inns, the business of providing lodging services.
3. Catering industry
Catering industry refers to the business of providing food and beverage consumption services to customers through the provision of both food and beverage and eating places. Restaurants, restaurants and other food service establishments, for customers in the dining room at the same time in the form of self-indulgence in the form of singing and dancing activities provided by the service, according to the "entertainment industry" tax items.
4. Tourism
The tourism industry refers to the business of arranging accommodation, transportation and providing tourist guides and other tourist services for tourists.
5, warehousing industry
Warehousing industry, refers to the use of warehouses, yards or other places on behalf of the customer storage, custody of goods business.
6, the leasing industry
Leasing industry, refers to the transfer of sites, houses, goods, equipment or facilities within an agreed period of time, such as the use of others in the business. According to the classification methods of the United Nations and the World Trade Organization, the service industry mainly consists of 11 major categories:
Business services (which are further divided into categories such as professional services, computer services, dry lease services, etc.); communication services (which are further divided into categories such as postal services, courier services, telecommunication services and audio-visual services, etc.); architectural and related engineering services; distribution services (which are further divided into categories such as commission agent services, wholesale services, retail services, franchise services, and other categories);
educational services; environmental services; financial services (which are subdivided into categories such as insurance and insurance-related services, banking and other financial services, securities services, and other categories); health-related and social services; tourism and travel-related services; recreational, cultural, and sports services;
transportation services (which are subdivided into categories such as categories such as maritime transport services, inland waterway transport services, air transport services, aerospace transport services, railroad transport services, road transport services, pipeline transport services, and auxiliary transport services). The service industry has gone through a long historical process from serving circulation to serving life and further expanding to serving production.
The social nature of the service industry has also changed with the development of history. In the pre-capitalist society, mainly for the slave owners and feudal lords service, mostly by small producers, and thus has the nature of small commodity economy. The capitalist service industry is profit-oriented, and the relationship between capitalists and service workers is one of employment.
Socialist service industry is based on public ownership of the means of production, in order to improve the material and cultural life of the people for the purpose of the industry is truly for the whole society's production, circulation and consumption services,
7, advertising
Advertising invoices around the world look different. Both handwritten and organic typing, generally have a watermark, individual places are not watermarked.
Currently, there are two types of advertising invoices supervised by Chongqing Local Taxation, namely the computerized version and the hand-filled version. Shanxi Province advertising business should use the service industry invoice.
Expanded Information:
Services invoice tax rate:
Applicable tax rate after the "conversion" of the living services industry
The current business tax rate of the living services industry The current business tax rate for the living services industry is generally 5%. After the conversion, the living service industry, including catering, tourism, hotel, entertainment, etc., will be based on the previously introduced "Business Tax to VAT Pilot Program" small-scale taxpayers using a 3% tax rate, while the general value-added taxpayers using a 6% tax rate.
For small-scale taxpayers, from the 5% business tax to the 3% simple collection rate, this part is certainly a tax cut. For general taxpayers applying the 6% tax rate, whether the tax reduction depends on the deduction, such as catering, if the deduction is more, then the tax burden is reduced relative to the 5% business tax that can not be deducted, and for the entertainment industry, which used to have a business tax rate of 5%-20%, the tax rate is significantly lower after the business tax reform.
According to this expectation, the tax rate has been raised from 5% business tax to 6% VAT, and the overall tax burden may be reduced as input tax can be deducted on expenditure on goods and services purchases.
The main challenge in realizing the overall reduction in tax liability will be in obtaining VAT invoices from suppliers, especially in the catering industry, which often transacts in cash and in many cases needs to procure ingredients from small-scale taxpayers.
The financial and tax impact of the "change of business model" in the living services industry
For catering enterprises, the common phenomenon is that most of the restaurant suppliers are not able to provide VAT invoices, and some of the suppliers are not qualified to issue VAT invoices, and some of them will increase the cost of invoices and raise the price of the supply, which is likely to be passed on to the restaurant. Costs are likely to be passed on to the restaurant, the restaurant will have to squeeze margins when it can't raise prices.
However, a new challenge will emerge after the reform of the restaurant industry - the sale of food (takeaway) need to pay 17% VAT rate, while dine-in only need to pay 6% VAT. How to differentiate between the location of the provision of goods or services (where the sale of goods is also included in the service) will likely become a new hotspot of controversy.
Applying the 6% VAT rate to the hospitality sector should ensure that the 6% VAT rate applies to the main services provided by most hotels (accommodation, conferences and events and catering). The regulations have now clearly agreed that input tax relating to purchased catering services, residents' daily services and entertainment services are not deductible.
Another major challenge for the hospitality industry will therefore be to rationalize (and manage client invoice requirements for) the pricing of conference or event packages, which often also include a catering or accommodation component.
As far as the healthcare industry is concerned, human resource costs account for a relatively large portion of the total, and the corresponding deductible input tax is limited, which is undoubtedly a huge pressure on the healthcare service industry, especially foreign and private and other social capital investment enterprises, which has a low level of average gross profit margin in the industry and needs to invest more in large-scale and advanced medical equipments and high-end medical talents.
To ensure the realization of the commitment to reduce or not to increase the tax burden of all industries, the provisions of the transition policy for the business tax to VAT pilot have made it clear that medical services provided by medical institutions are exempted from value-added tax (VAT).
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