Small taxpayers issuing or applying for special VAT invoices issued on behalf of the taxpayer are unified to use the levy rate (3%) as the tax rate. The collection rate of VAT applies to both small-scale taxpayers and specific general taxpayers. Small-scale taxpayers are uniformly taxed at a levy rate of 3%; for some specific general taxpayers, four levy rates of 6%, 5%, 4% and 3% are applied. Specifically, items with a 6% levy rate include tap water, electricity produced by small-scale hydroelectric units, some building material products and biological products; items with a 5% levy rate are crude oil and natural gas extracted by Sino-foreign cooperation; items with a 4% levy rate include consignment, pawn and auction goods, and sale of used goods; and items with a 3% levy rate are public **** transportation and other camping individual taxable services.
Difference between VAT small-scale taxpayers and general taxpayers
(1) General VAT taxpayers can issue 17% VAT invoices for the sale of goods on their own, and can obtain 17% or 3% VAT invoices for the purchase of goods, and are taxed according to the difference between the output tax amount minus the input tax amount when paying VAT, with a relatively lower tax burden;
(2) and Small-scale taxpayers can only entrust the tax authorities to issue 3% VAT invoices when selling goods, and the VAT invoices obtained when purchasing goods are not deductible, and the tax is calculated according to the simplified rate of 3% of sales revenue when paying VAT.
(3) Compared with general VAT payers, small-scale VAT payers have the following two weaknesses:
1. When paying VAT, small-scale VAT payers calculate tax according to the simple rate of 3% of the sales revenue, while general VAT payers calculate tax according to the method of output tax minus input tax, and the proportion of VAT payable to the sales revenue is generally lower than 3%. The proportion of VAT payable to sales revenue of general VAT payers is generally lower than 3%, and many enterprises are far lower than 3%;
2. Small-scale VAT payers can only commission tax authorities to issue 3% VAT invoices on behalf of tax authorities when they sell goods, in which case many general VAT payers won't choose to purchase goods from small-scale VAT payers because general VAT payers can't obtain 17% VAT invoices for offsetting the VAT value of the goods purchased from the small-scale VAT payers. Because the general VAT payer can not obtain 17% VAT invoice from the small VAT payer to offset the sales tax when purchasing goods, it will cancel the business dealings with the small VAT payer, which will make the small VAT payer lose a lot of customers of the general VAT payer; therefore, from the viewpoint of long-term development of the enterprise, the enterprise has to become a general VAT payer if it wants to realize a greater development and expand a larger market.
Legal basis:
"Provisional Regulations of the People's Republic of China on Value-added Tax (VAT)" the following items can be exempted from value-added tax:
1. Seeds, seedlings, agricultural plastic film, organic fertilizer products and prescribed agricultural machinery, chemical fertilizers, pesticides, fodder and other means of agricultural production, agriculture (including planting, farming forestry, animal husbandry and aquaculture) production units and individual sales of self-produced primary agricultural products;
2, processing and re-export of goods;
3, imported for the production of enterprises to produce the Ministry of Science and Technology, "National High-tech Product Catalog" in the products listed in the provisions of the equipment for their own use and in accordance with the contract along with the equipment imported supporting technology, accessories and spare parts;
4, foreign governments and international financial organizations loan projects imported equipment for their own use (unless otherwise specified by the state);
5, the enterprise for the introduction of advanced technologies listed in the Ministry of Science and Technology of China's "National High-tech Product Catalog," the software fees paid outside the country;
6, contraceptive medicines and appliances;
7, to the community to acquire the old and vintage books ;
8. Scientific research institutes and schools (mainly referring to specialized scientific research institutes belonging to provincial and ministerial-level units and institutions of higher education implementing higher education above the level of specialties with state-recognized academic qualifications) prescribed by the State, for the purpose of scientific research and teaching, to import scientific research and teaching supplies that cannot be produced domestically or whose performance fails to meet the needs, within a reasonable quantity;
9, Imported instruments and equipment used directly for agricultural research and testing;
10, foreign governments, international organizations gratuitous assistance, gifts of imported materials and equipment, foreign governments, international organizations gratuitous assistance projects in China to purchase goods;
11, natural persons outside of China, legal persons and other organizations in accordance with the provisions of the gratuitous donation of imports to the recipient of the goods used directly for poverty alleviation, charitable causes;
12, the donor outside China in accordance with the provisions of the gratuitous donation directly for all types of vocational schools, high schools, junior high schools, elementary school and kindergarten education teaching instruments, books, materials and general school supplies;
13, in line with state regulations imported for the exclusive use of disabled persons;
14, personal sales of their own used goods
15, the sale of grain by state-owned grain purchase and marketing enterprises that undertake grain storage tasks, the sale of grain for military use, disaster relief food and rations for reservoir immigrants operated by other grain enterprises, and the sale of edible vegetable oils from government reserves;
16, the prescribed military and police supplies produced by military industrial enterprises, enterprises belonging to the military and public security, judicial and other departments, and enterprises in general;
17, prosthetic limbs, wheelchairs and orthopedic appliances exclusively for the use of persons with disabilities;
18, processing and repair and fitting services provided by individuals with disabilities;
19, prescribed products for comprehensive utilization of resources, including taxpayers' self-produced reclaimed water, rubber powder produced from waste tires as the raw material for all production, retreaded tires, and specific building materials with a proportion of not less than 30% of the raw material for production mixed with waste residue Products (including bricks other than sintered ordinary bricks, blocks, ceramic granules, wall panels, pipes, concrete, mortar, road manhole covers, road guardrails, fireproofing materials, fire-resistant materials, heat preservation materials, mineral wool and rock wool);
20, the provisions of the wastewater treatment labor services;
21, blood stations to supply clinical blood to health care institutions;
22, self-produced by non-profit medical institutions for their own use of preparations;
22, non-profit medical institutions for their own use of preparations;
23, the taxpayer's own production of medical products Preparations for self-use;
23. Goods exported by small-scale taxpayers, except for those goods for which VAT refund (exemption) is not permitted under the state regulations;
24. Border residents importing daily necessities within the scope of the regulations through reciprocal trade are exempted from VAT on imports if the value of such imports is less than RMB 8,000 per person per day.
25. Since October 1, 2012, some fresh meat and egg products have been exempted from VAT in the distribution chain.