Special reminder: Please refer to the policies announced by relevant national departments. The following are only possible guesses and are not used as a basis for decision-making.
1. Announcement of the Ministry of Finance and the State Administration of Taxation on clarifying the policy of additional VAT deduction for the lifestyle service industry
Announcement No. 87 of 2019 by the Ministry of Finance and the State Administration of Taxation
Taxation Network Note - Based on the "Announcement on Value-Added Tax Policies on Promoting the Relief and Development of Difficult Industries in the Service Industry" ( Ministry of Finance The State Administration of Taxation Announcement No. 11 of 2022 ), the implementation period of the additional value-added tax deduction policy for production and daily service industries stipulated in this article has been extended to December 31, 2022.
The relevant policy announcement on the additional VAT deduction for the daily service industry is as follows:
1. From October 1, 2019 to December 31, 2021, taxpayers in the daily service industry are allowed to deduct an additional 15% of the input tax that can be deducted for the current period to offset the tax payable (hereinafter referred to as the 15% additional deduction policy).
2. For the purpose of this announcement, taxpayers in the daily life service industry refer to taxpayers whose sales from providing daily services account for more than 50% of the total sales. The specific scope of life services shall be implemented in accordance with the "Notes on Sales Services, Intangible Assets, and Real Estate" (Finance and Taxation [2016] No. 36).
For taxpayers established before September 30, 2019, if their sales from October 2018 to September 2019 (if the operating period is less than 12 months, the sales during the actual operating period) meet the above-mentioned conditions, the 15% super deduction policy will apply from October 1, 2019.
For taxpayers established after October 1, 2019, if the sales in the three months since the date of establishment meet the above-mentioned conditions, the 15% super deduction policy will apply from the date of registration as a general taxpayer.
After a taxpayer determines that the 15% super deduction policy is applicable, it will not be adjusted in the current year. Whether it is applicable in subsequent years will be determined based on the sales volume of the previous year.
3. Taxpayers in the lifestyle service industry should accrue current period’s additional deduction amount based on 15% of the deductible input tax for the current period. According to the current regulations, the input tax that cannot be deducted from the output tax shall not be provided with an additional credit; for the input tax that has been accrued with a 15% additional credit, if the input tax is transferred out of the company in accordance with the regulations, the additional additional credit shall be adjusted accordingly in the current period when the input tax is transferred out. The calculation formula is as follows:
The amount of additional deductions for the current period = the deductible input tax for the current period × 15%
The amount of additional deductions for the current period = the additional deductions at the end of the previous period The balance + the accrued additional deduction for the current period - the reduction of the additional deduction for the current period
4. Other matters related to the application of the additional deduction policy by taxpayers shall be in accordance with the "Announcement on Relevant Policies for Deepening the Value-Added Tax Reform" (Ministry of Finance) The State Administration of Taxation and the General Administration of Customs Announcement No. 39 of 2019) and other relevant regulations shall be implemented.
is hereby announced.
2. Announcement of the Ministry of Finance and the State Administration of Taxation on Clarifying the VAT Exemption Policy for Small-Scale Taxpayers
Ministry of Finance The full text of the State Administration of Taxation Announcement No. 11 of 2021
is valid
2021.3.31
to further support the development of small and micro enterprises , the policy announcement for value-added tax small-scale taxpayers to be exempted from VAT is now as follows:
From April 1, 2021 to December 31, 2022, small-scale VAT taxpayers with monthly sales of less than 150,000 yuan (inclusive) will be exempted from VAT.
Article 1 of the "Notice of the Ministry of Finance and the State Administration of Taxation on the Implementation of Inclusive Tax Reduction and Reduction Policies for Small and Micro Enterprises" (Finance and Taxation [2019] No. 13) is repealed at the same time.
is hereby announced.
Ministry of Finance and State Administration of Taxation
March 31, 2021
3. Announcement on Value-Added Tax Policies on Promoting the Relief and Development of Difficult Industries in the Service Industry
Ministry of Finance The full text of the State Administration of Taxation Announcement No. 11 of 2022
is valid
2022.3.3
In order to promote the relief and development of difficult industries in the service industry, the relevant value-added tax policies are hereby announced as follows:
1. "Ministry of Finance and State Administration of Taxation" Article 7 of the Announcement of the General Administration of Customs on Relevant Policies for Deepening Value-Added Tax Reform (Announcement No. 39 of the Ministry of Finance, the State Administration of Taxation, and the General Administration of Customs in 2019) and the "Announcement of the Ministry of Finance and the State Administration of Taxation on Clarifying the Policy for Additional Value-Added Tax Deductions in the Life Service Industry" (Announcement No. 87 of the Ministry of Finance and the State Administration of Taxation in 2019) stipulate that the implementation period of the additional VAT deduction policy for the production and daily service industry has been extended to December 31, 2022.
2. From January 1, 2022 to December 31, 2022, branches of air and railway transportation enterprises will suspend the prepayment of value-added tax. The prepaid value-added tax from the tax filing period in February 2022 to the date of document release will be refunded.
3. From January 1, 2022 to December 31, 2022, taxpayers’ income from providing public transportation services will be exempt from value-added tax. The specific scope of public transportation services shall be implemented in accordance with the "Regulations on Matters Related to the Pilot Program of Replacing Business Tax with Value-Added Tax" (Issued by Finance and Taxation [2016] No. 36). The value-added tax that has been collected into the treasury before the issuance of this announcement and should be exempted according to the above provisions can be deducted from the value-added tax payable by the taxpayer in subsequent months or the tax can be refunded to the treasury. If a special value-added tax invoice has been issued to the purchaser, the special invoice must be recovered before tax exemption can be applied for.
is hereby announced.
Ministry of Finance and State Administration of Taxation
March 3, 2022
4. Announcement on Further Strengthening the Implementation of the Value-Added Tax Period Excess Credit Refund Policy
Ministry of Finance and State Administration of Taxation Announcement No. 14 of 2022
Tax Network Note -
1. According to the Ministry of Finance Announcement of the State Administration of Taxation on Further Accelerating the Implementation Progress of the End-of-Period Value-Added Tax Excess Credit Refund Policy (Ministry of Finance State Administration of Taxation Announcement No. 17 of 2022), the second paragraph of Article 2 of Announcement No. 14 of 2022 has been adjusted to "Eligible medium-sized enterprises in manufacturing and other industries can apply to the competent tax authorities for a one-time refund of existing retained tax credits starting from the tax declaration period in July 2022." Before June 30, 2022, on the basis of voluntary application by taxpayers, the existing retained tax credits of medium-sized enterprises will be refunded in a centralized manner.
2. According to the "Announcement on Further Continuously Accelerating the Implementation Progress of the Value-Added Tax Period-End Excess Credit Refund Policy" (Ministry of Finance State Administration of Taxation Announcement No. 19, 2022), the second paragraph of Article 2 of this article is revised to "Eligible large-scale enterprises in manufacturing and other industries can apply to the competent tax authorities for a one-time refund of the existing retained tax credits starting from the tax declaration period in October 2022" to "Eligible large-scale enterprises in the manufacturing and other industries can apply to the competent tax authorities for a one-time refund of the existing retained tax credits starting from the tax declaration period in June 2022." Before June 30, 2022, on the basis of voluntary application by taxpayers, the existing retained tax credits of large enterprises will be refunded in a centralized manner.
3. According to the "Announcement on Expanding the Industry Scope of the Policy for Full Refund of Value-Added Tax Excess Credit" (Ministry of Finance According to the State Administration of Taxation Announcement No. 21 of 2022), the policy scope of the full monthly refund of incremental VAT credits and the one-time refund of existing VAT credits for manufacturing and other industries stipulated in Article 2 of this article has been expanded to include "wholesale and retail industries", "agriculture, forestry, animal husbandry, and fishery", "Accommodation and catering industry", "resident services, repair and other service industries", "education", "health and social work" and "culture, sports and entertainment industry" (hereinafter referred to as wholesale and retail industries and other industries) enterprises (including individual industrial and commercial households , the same below).
In order to support the development of small and micro enterprises and manufacturing and other industries, boost the confidence of market entities, and stimulate the vitality of market entities, the implementation of the end-of-period value-added tax refund will be further increased. The relevant policy announcement is as follows:
1. Strengthen the end-of-period VAT credit refund policy for small and micro enterprises, expand the scope of the full monthly refund of incremental VAT credit for advanced manufacturing industries to eligible small and micro enterprises (including individual industrial and commercial households, the same below), and refund the existing VAT credit for small and micro enterprises in one go.
(1) Qualified small and micro enterprises can apply to the competent tax authorities for a refund of the incremental excess tax credit starting from the tax declaration period in April 2022. Before December 31, 2022, the tax refund conditions will be implemented in accordance with the provisions of Article 3 of this announcement.
(2) Qualified micro-enterprises can apply to the competent tax authorities for a one-time refund of the existing retained tax credits starting from the tax declaration period in April 2022; qualified small enterprises can apply to the competent tax authorities for a one-time refund of the existing retained tax credits starting from the tax declaration period in May 2022.
2. Increase the “manufacturing industry”, “scientific research and technical service industry”, “electricity, heat, gas and water production and supply industry”, “software and information technology service industry”, “ecological protection and environmental management industry” and “transportation, warehousing and postal industry” "(Hereinafter referred to as manufacturing and other industries) The end-of-period value-added tax refund policy will expand the policy scope of advanced manufacturing industries to fully refund incremental value-added tax credits on a monthly basis to qualified enterprises in manufacturing and other industries (including individual industrial and commercial households, the same below), and refund the remaining retained tax credits to enterprises in manufacturing and other industries in one go.
(1) Qualified enterprises in manufacturing and other industries can apply to the competent tax authorities for a refund of the incremental excess tax credit starting from the tax declaration period in April 2022.
(2) Qualified medium-sized enterprises in the manufacturing and other industries can apply to the competent tax authorities for a one-time refund of the existing retained tax credits starting from the tax declaration period in July 2022; qualified large enterprises in the manufacturing and other industries can apply to the competent tax authorities for a one-time refund of the existing retained tax credits starting from the tax declaration period in October 2022.
3. Taxpayers applicable to the policy of this announcement must meet the following conditions at the same time:
(1) tax credit grade is level A or B;
(2) No fraudulent use of excess credits has occurred in the 36 months before applying for tax refund.
(3) Have not been punished twice or more by the tax authorities for tax evasion in the 36 months before applying for tax refund;
(4) Have not enjoyed the tax-and-refund , tax-first-refund (refund) policy since April 1, 2019.
4. The incremental retained tax credit referred to in this announcement shall be determined based on the following situations:
(1) Before the taxpayer obtains a one-time refund of the existing retained tax credit, the incremental retained tax credit shall be the newly increased retained tax credit amount compared with the ending retained tax credit of the current period and March 31, 2019.
(2) After a taxpayer obtains a one-time refund of the existing tax credits, the incremental tax credits shall be the ending tax credits of the current period.
5. The amount of retained tax credits referred to in this announcement shall be determined by distinguishing between the following situations:
(1) Before the taxpayer obtains a one-time refund of retained tax credits, the amount of retained tax credits at the end of the current period If it is greater than or equal to the ending tax credit as of March 31, 2019, the remaining tax credit shall be the ending tax credit as of March 31, 2019; if the ending tax credit of the current period is less than the ending tax credit as of March 31, 2019, the remaining tax credit shall be the ending tax credit as of the current period.
(2) After a taxpayer obtains a one-time refund of the existing excess tax credit, the amount of the existing excess tax credit will be zero.
6. The medium-sized enterprises, small enterprises and micro-enterprises referred to in this announcement are determined in accordance with the operating income indicators and total assets indicators in the " Small and Medium Enterprise Classification Standards" (Ministry of Industry and Information Technology [2011] No. 300) and the "Financial Industry Enterprise Classification Standards" (Yinfa [2015] No. 309). Among them, the total assets indicator is determined based on the end-of-year value of the taxpayer's previous fiscal year.The operating income indicator is determined based on the value-added tax sales of the taxpayer in the previous fiscal year; if it is less than one fiscal year, it is calculated according to the following formula:
Value-added tax sales (year) = value-added tax sales during the actual existence of the enterprise in the previous fiscal year / actual number of months of existence of the enterprise × 12
The value-added tax sales in this announcement include tax declaration sales, audit and supplementary sales, and tax assessment adjustment sales. If the VAT difference tax policy applies, the sales volume after the difference will be determined.
For taxpayers in industries other than those listed in Document No. 300 [2011] of the Ministry of Industry and Information Technology and Yinfa [2015] No. 309, as well as industries listed in Document No. 300 of the Ministry of Industry and Information Technology Enterprise [2011] but do not use operating income indicators or total assets indicators. For taxpayers determined by classification, the micro enterprise standard is VAT sales (annual) of less than 1 million yuan (excluding 1 million yuan); the small enterprise standard is VAT sales (annual) less than 20 million yuan (excluding 20 million yuan); the medium-sized enterprise standard is VAT sales (annual) less than 100 million yuan (excluding 100 million yuan).
The large enterprises mentioned in this announcement refer to other enterprises except the above-mentioned medium-sized enterprises, small enterprises and micro enterprises.
7. Enterprises in manufacturing and other industries mentioned in this announcement refer to taxpayers engaged in the "manufacturing industry", "scientific research and technical services industry", "electricity, heat, gas and water production and supply industry", "software and information technology service industry", "ecological protection and environmental management industry" and "transportation, warehousing and postal industry" businesses in the " National Economic Industry Classification ", and the corresponding value-added tax sales account for more than 50% of the total value-added tax sales.
The above sales proportion is calculated and determined based on the sales volume for the 12 consecutive months before the taxpayer applies for tax refund; if the operating period before applying for tax refund is less than 12 months but more than 3 months, it is calculated and determined based on the sales volume during the actual operating period.
8. Taxpayers subject to the policy of this announcement shall calculate the amount of refundable retained tax credit according to the following formula:
The incremental retained tax credit allowed to be refunded = Incremental retained tax credit × input composition ratio l1 The proportion of input is the special value-added tax invoices that have been deducted from April 2019 to the tax period before applying for tax refund (including fully digitalized electronic invoices with the words "special value-added tax invoice", tax control mobile The proportion of the VAT amount indicated in the unified invoice for vehicle sales, toll road toll VAT electronic general invoice , customs import VAT special payment form, and tax payment voucher account for all deducted input tax in the same period. 9. If a taxpayer exports goods and services and engages in cross-border taxable activities, and the tax exemption, credit and refund method is applicable, he should first apply for tax exemption, credit and refund. After the tax exemption, credit and refund is processed, if the conditions stipulated in this announcement are still met, you can apply for a refund of the retained tax credit; if the tax exemption and refund method is applicable, the relevant input tax shall not be used to refund the retained tax credit. 10. Taxpayers who have obtained the refund of excess tax credits since April 1, 2019, may no longer apply to enjoy the policy of VAT refund immediately after collection, or VAT refund after collection (refund). Taxpayers can pay back all the excess tax refunds they have received in one go before October 31, 2022, and then apply to enjoy the policy of VAT refund immediately after collection, or VAT refund after collection (refund) in accordance with regulations. Taxpayers who have enjoyed the policy of VAT refund after collection and refund after collection since April 1, 2019 can apply for a refund of the excess tax credit in accordance with regulations after paying all the refunded VAT immediately before October 31, 2022. 11. Taxpayers can choose to apply for a tax refund from the competent tax authorities, or they can choose to carry forward the tax deduction to the next period. Taxpayers should apply for a tax refund after completing the VAT return for the current period during the tax return period. The application time for excess tax refund from April to June 2022 will be extended to the last working day of each month. Taxpayers can apply for incremental excess tax refund and existing excess tax refund at the same time within the specified period.Taxpayers who comply with the relevant excess credit tax refund policies in Articles 1 and 2 of this announcement may choose to apply for the above-mentioned excess credit tax refund policies. 12. After taxpayers obtain the refunded excess tax credit, they should reduce the current tax credit amount accordingly. If it is found that the taxpayer has incorrectly applied the excess tax refund policy, the taxpayer should pay the relevant excess tax refund before the end of the next tax return period. If the tax refund is defrauded by inflated income, false declarations or other deceptive means, the tax authorities will recover the fraudulent tax refund and handle it in accordance with the "Tax Collection Management Law of the People's Republic of China" and other relevant regulations. 13. The tax management matters for taxpayers who are subject to the excess tax refund policy stipulated in this announcement will continue to follow the current regulations. 14. The provisions for taxpayers other than the above-mentioned taxpayers to apply for the refund of incremental excess tax credits will continue to be implemented in accordance with the "Announcement of the Ministry of Finance, the State Administration of Taxation, and the General Administration of Customs on Relevant Policies for Deepening the Reform of Value-Added Tax" (Announcement No. 39 of the Ministry of Finance, the State Administration of Taxation, and the General Administration of Customs in 2019). Among them, the relevant provisions of Article 8, Paragraph 3, on the "proportion of input input" shall be implemented in accordance with the provisions of Article 8 of this announcement. 15. Finance and taxation departments at all levels must attach great importance to the tax refund work, find out the bottom line, make careful planning, strengthen publicity, close collaboration, and coordinate promotion, and before April 30, June 30, September 30, and December 31, 2022, respectively, on the basis of voluntary application by taxpayers, centrally refund the existing tax credit refund to micro, small, medium, and large enterprises. The tax department handles taxpayers' tax refund applications in a standardized, efficient and convenient manner based on the taxpayer's application status. 16. This announcement will be effective from April 1, 2022. "Announcement of the Ministry of Finance and the State Administration of Taxation on clarifying the policy for the end-of-period value-added tax refund for some advanced manufacturing industries" (Announcement No. 84 of the Ministry of Finance and the State Administration of Taxation in 2019), "Announcement of the Ministry of Finance and the State Administration of Taxation on clarifying the value-added tax policy for leasing state-owned agricultural land" (Announcement No. 2 of the Ministry of Finance and the State Administration of Taxation, 2020). Article 6, "Announcement of the Ministry of Finance and the State Administration of Taxation on clarifying the policy for the end-of-period value-added tax refund for advanced manufacturing industries" (Ministry of Finance State Administration of Taxation Announcement No. 15 of 2021) shall be abolished at the same time. is hereby announced. Ministry of Finance and State Administration of Taxation March 21, 2022 5. Announcement on Exempting Small-scale Value-Added Taxpayers from Value-Added Tax Ministry of Finance State Administration of Taxation Announcement No. 15 of 2022 In order to further support the development of small and micro enterprises, the relevant value-added tax policies are now announced as follows: From April 1 to 2, 2022 On December 31, 2022, the taxable sales income of small-scale VAT taxpayers that is subject to the 3% tax rate is exempt from VAT; the prepaid VAT items that are subject to the 3% prepayment rate are suspended. The tax preferential policies stipulated in Article 1 of the "Announcement of the Ministry of Finance and the State Administration of Taxation on the Continuation of Some Preferential Tax Policies in Response to the Epidemic" (Announcement No. 7 of the Ministry of Finance and the State Administration of Taxation, 2021) have been extended to March 31, 2022. is hereby announced. Ministry of Finance and State Administration of Taxation March 24, 2022 6. Announcement of the Ministry of Finance and State Administration of Taxation on the VAT exemption policy for express delivery services Ministry of Finance The State Administration of Taxation Announcement No. 18 of 2022 The policy announcement on the VAT exemption for express delivery services is now as follows: From May 1, 2022 to December 31, 2022, the income derived by taxpayers from providing express delivery services of necessary daily necessities to residents will be exempt from VAT. The specific scope of express collection and delivery services shall be implemented in accordance with the "Notes on Sales Services, Intangible Assets, and Real Estate" (Finance and Taxation [2016] No. 36). is hereby announced. Ministry of Finance State Administration of Taxation April 29, 2022
