How do small-scale taxpayers who declare monthly enjoy the VAT reduction and exemption policy？ Put away this article.

In order to facilitate taxpayers and grass-roots tax authorities to check the answers to relevant policies, the State Administration of Taxation has comprehensively sorted out and confirmed the questions and answers issued by the State Administration of Taxation from January 2019 to July 2024, and compiled and formed a series of tax and fee support policies since 2019 covering 294 current effective answers in 34 topics in 8 categories.Today, I understand the relevant questions and answers about the VAT reduction and exemption policy for small-scale taxpayers.

[Question 1] I am a small decoration company, and I am a small-scale VAT taxpayer who declares on a monthly basis, so I can apply the differential taxation policy for subcontracting of construction services. Excuse me, is the monthly sales of small-scale taxpayers exempted from VAT judged before or after the difference?

A:Judging by the sales after the difference. The Announcement of State Taxation Administration of The People’s Republic of China on the Collection and Management of VAT Reduction and Exemption Policies for Small-scale Taxpayers (State Taxation Administration of The People’s Republic of China Announcement No.1, 2023) stipulates that small-scale taxpayers who apply the VAT differential taxation policy can determine whether the above-mentioned VAT exemption policy can be implemented based on the sales after the difference. Therefore, if the construction services provided by your company can be deducted by the difference according to the regulations, whether the above-mentioned small-scale taxpayers are exempted from value-added tax policy can be determined by the sales after the difference.

[Question 2] Our company is a small-scale VAT taxpayer who declares monthly. On January 6, 2023, we transferred a store. After excluding the sales of the transferred store, it is estimated that the sales in January will be less than 100,000 yuan, and all of them will be invoiced. Can our company enjoy the VAT exemption policy? What should we pay attention to when declaring?

A:Article 1 of State Taxation Administration of The People’s Republic of China’s Announcement on the Collection and Management of Small-scale VAT Taxpayers’ Exemption and Exemption Policies (No.1 in 2023) stipulates that if small-scale taxpayers engage in VAT taxable sales, and their total monthly sales exceed 100,000 yuan, but after deducting the sales of real estate that occurred in this period, they do not exceed 100,000 yuan, their sales of goods, services and intangible assets will be exempted from VAT. When your company handles the VAT tax return for the January tax period, you should accurately enter the data of "Sales of Real Estate in Current Period" in the reporting interface of VAT and Additional Taxes (for small-scale taxpayers), and the system will automatically calculate the current sales after deducting the sales of real estate. If the sales after deduction does not exceed 100,000 yuan, you can enjoy the VAT exemption policy. When handling the tax declaration, the deducted sales should be filled in the relevant column of "VAT and Additional Taxes and Fees Declaration Form (applicable to small-scale taxpayers)".

[Question 3] I am a small-scale VAT taxpayer who declares on a monthly basis. In August 2023, I issued an ordinary VAT invoice with a 3% collection rate for my customers. If the actual monthly sales do not exceed 100,000 yuan, can I enjoy the preferential tax-free policy?

[Question 4] Our company is a small-scale VAT taxpayer who declares monthly. In September 2023, it is estimated that the income from selling goods will be 200,000 yuan. What tax reduction and exemption policy can we enjoy and how to issue VAT invoices?

[Question 5] I am a catering company. I am a small-scale taxpayer who declares value-added tax on a monthly basis. On August 25th, 2023, I issued an ordinary VAT invoice with a rate of 3% of 20,000 yuan for my customers. The actual monthly sales in August was 150,000 yuan, all of which were sales revenue at 3% levy rate. Our customers were individuals and could not recover the invoices already issued. Can our company still enjoy the policy of 3% levy rate sales revenue minus 1% levy rate for VAT?

A:Article 2 of the Announcement of the Ministry of Finance and the State Administration of Taxation on the Reduction and Exemption of VAT for Small-scale VAT Taxpayers (No.19, 2023) stipulates that small-scale VAT taxpayers shall apply taxable sales income at a rate of 3%, and the VAT shall be levied at a reduced rate of 1%. Your sales income of 3% tax rate is 150,000 yuan, you can directly declare tax reduction when you declare tax payment, and you can enjoy the policy of 3% tax rate sales income minus 1% tax rate. In order to reduce your tax burden, there is no need to void or change the ordinary VAT invoice with 3% levy rate. However, it should be noted that, according to the Measures for the Administration of Invoices in People’s Republic of China (PRC) and other relevant regulations, taxpayers should issue invoices truthfully. Article 5 of the Announcement of State Taxation Administration of The People’s Republic of China on the Collection and Management of Small-scale VAT Taxpayers’ Reduction and Exemption of VAT and Other Policies (No.1 in 2023) stipulates that if small-scale taxpayers obtain taxable sales income and apply the policy of collecting VAT at a reduced rate of 1%, they should issue VAT invoices at a rate of 1%. Therefore, in the future, when you enjoy the policy of 3% levy rate for sales revenue minus 1% levy rate for VAT, if you need to issue an ordinary VAT invoice, you should issue it at 1% levy rate.

[Question 6] Our company is a small-scale VAT taxpayer who retails motorcycles. In August 2023, the sales volume was 90,000 yuan. When invoicing customers, it was impossible to confirm whether the sales volume this month would exceed 100,000 yuan, and a unified invoice for motor vehicle sales with a 1% levy rate was issued. Can I still enjoy the tax exemption policy for monthly sales below 100,000 yuan? My individual customers are general VAT taxpayers, can I deduct the input tax?

A:Article 1 of the Announcement of the Ministry of Finance and the State Administration of Taxation on the Reduction and Exemption of VAT for Small-scale VAT Taxpayers (No.19, 2023) stipulates that small-scale VAT taxpayers with monthly sales of less than 100,000 yuan (inclusive) shall be exempted from VAT. If your monthly sales do not exceed 100,000 yuan, you can directly declare tax exemption when you declare tax payment, and enjoy the policy of exemption from value-added tax. If your customer is a general taxpayer, you can deduct the corresponding input tax on the basis of the unified invoice for motor vehicle sales with 1% levy rate.

[Question 7] Our company is a small-scale VAT taxpayer who retails motorcycles, with a monthly sales of about 100,000 yuan. When invoicing customers in the middle of the month, it is impossible to confirm whether I can enjoy the tax exemption policy with a monthly sales of less than 100,000 yuan this month. How can I issue a unified invoice for motor vehicle sales if I want to enjoy the preferential policies of small-scale taxpayers?

A:Announcement of the Ministry of Finance and the State Administration of Taxation on the Policy of Reducing and Exempting VAT for Small-scale VAT Taxpayers (No.19, 2023) stipulates that small-scale VAT taxpayers with monthly sales of less than 100,000 yuan (inclusive) shall be exempted from VAT. Small-scale taxpayers of value-added tax are subject to taxable sales income at a rate of 3%, and value-added tax is levied at a reduced rate of 1%. When you invoice in the middle of the month, you don’t know whether the sales will exceed 100,000 yuan and whether you can enjoy the tax exemption policy. You should first issue a unified invoice for motor vehicle sales at the rate of 1%. When declaring tax, if the monthly sales amount does not exceed 100,000 yuan, you can declare tax exemption when declaring tax. If the monthly sales amount exceeds 100,000 yuan, you can declare and pay VAT at a reduced rate of 1%.

[Question 8] I am a small-scale taxpayer engaged in motorcycle sales, and my monthly sales amount is less than 100,000 yuan. Can I still issue a special tax-free VAT invoice?

[Question 9] I am a small-scale VAT taxpayer who declares monthly, and my monthly sales amount is about 100,000 yuan, but I can’t confirm whether my total income will exceed 100,000 yuan when I invoice my customers. How can I invoice if I want to enjoy the preferential policies for small-scale taxpayers?

A:Article 1 of the Announcement of the Ministry of Finance and the State Administration of Taxation on the Reduction and Exemption of VAT for Small-scale VAT Taxpayers (No.19, 2023) stipulates that small-scale VAT taxpayers with monthly sales of less than 100,000 yuan (inclusive) shall be exempted from VAT. Small-scale taxpayers of value-added tax are subject to taxable sales income at a rate of 3%, and value-added tax is levied at a reduced rate of 1%. If you are not sure whether the sales in the current month will exceed 100,000 yuan, and the taxable sales income with 3% levy rate applies, you should first issue a general VAT invoice at 1% levy rate. When declaring tax, if the monthly sales amount does not exceed 100,000 yuan, you can declare tax exemption when declaring tax. If the monthly sales amount exceeds 100,000 yuan, you can declare and pay VAT at a reduced rate of 1%.

[Question 10] I am a small-scale VAT taxpayer who declares on a monthly basis. In May 2023, I issued an ordinary VAT invoice at a rate of 3% according to my custom. If the actual monthly sales do not exceed 100,000 yuan, can I enjoy the preferential tax-free policy?

A:The Announcement of the Ministry of Finance and the State Administration of Taxation on the Policy of Reducing and Exempting VAT for Small-scale Taxpayers (Announcement No.19 of the Ministry of Finance and the State Administration of Taxation in 2023) stipulates that before December 31, 2027, small-scale taxpayers with monthly sales of less than 100,000 yuan (inclusive) will be exempted from VAT. If your monthly sales do not exceed 100,000 yuan, you can directly declare tax exemption when you declare tax, and enjoy the policy of exemption from value-added tax.

[Question 11] Our company is a small-scale VAT taxpayer who declares on a monthly basis. In January 2023, the sales amount of RMB 150,000 which is subject to 3% levy rate was incurred, and all of them were invoiced on January 4, of which RMB 100,000 was issued with tax-free invoice and RMB 50,000 with 3% levy rate. According to the regulations, the policy of 3% minus 1% levy rate can be applied. How should I apply for the VAT tax declaration of January tax?

A:Article 7 of the Announcement of State Taxation Administration of The People’s Republic of China on the Collection and Management of Small-scale VAT Taxpayers (No.1, 2023) stipulates that taxpayers are subject to VAT at a reduced rate of 1% in accordance with the Announcement of the Ministry of Finance and the State Administration of Taxation on Defining the Policies of Small-scale VAT Taxpayers’ Reduction and Exemption (No.1, 2023). The corresponding sales amount shall be filled in the corresponding column of VAT and Additional Taxes Declaration Form (for small-scale taxpayers) and VAT-free sales amount (3% collection rate), and the corresponding reduced VAT tax amount shall be calculated as 2% of the sales amount and filled in the corresponding column of VAT tax reduction items in VAT and Additional Taxes Declaration Form (for small-scale taxpayers), Taxable Amount Reduction in Current Period and Detailed Statement of VAT Reduction and Exemption. Your company applies the policy of collecting VAT at a reduced rate of 1%. Before the publication of the above policy documents, the taxable sales of the tax-free invoices and the ordinary VAT invoices with a rate of 3% shall be filled in according to the above requirements.

[Question 12] I am a small company that wholesales goods, and I belong to a small-scale VAT taxpayer who declares monthly. In April, our company earned 500,000 yuan from selling real estate (excluding VAT, the same below) and 80,000 yuan from selling goods. Excuse me, can our company enjoy the VAT exemption policy for small-scale taxpayers with monthly sales below 100,000 yuan?

A:The Announcement of State Taxation Administration of The People’s Republic of China on the Collection and Management of Small-scale VAT Taxpayers (State Taxation Administration of The People’s Republic of China Announcement No.1, 2023) stipulates that small-scale VAT taxpayers (hereinafter referred to as small-scale taxpayers) are exempt from VAT if their total monthly sales do not exceed 100,000 yuan (if one quarter is a tax period, the quarterly sales do not exceed 300,000 yuan, the same below). Small-scale taxpayers engaged in taxable sales of value-added tax, with total monthly sales exceeding 100,000 yuan, but not exceeding 100,000 yuan after deducting the sales of real estate in the current period, shall be exempted from value-added tax on the sales of goods, services and intangible assets. Your company’s total monthly sales exceed 100,000 yuan, but it does not exceed 100,000 yuan after deducting the sales of real estate in this period. Therefore, according to the regulations, the sales obtained by your company from selling goods can enjoy the exemption of value-added tax policy for small-scale taxpayers with monthly sales below 100,000 yuan. Income from the sale of real estate shall be subject to value-added tax according to regulations.