How is catering tax calculated?

The "Implementation Measures for the Pilot Program of Replacing Business Tax with Value-Added Tax" has clearly stipulated that the tax rate for general taxpayers in the catering industry is 6, while the composite tax rate applicable to small-scale taxpayers is 3.

1. Small-scale taxpayers

From the perspective of turnover, many catering companies are currently small-scale taxpayers. This means that after May 1, the comprehensive tax rate paid by these catering companies will drop to 3. Compared with the previous tax rate of 5, the tax burden will be significantly reduced. For example, a restaurant with a monthly turnover of 103,000 yuan needs to pay a business tax of 5,150 yuan (103,000×5) before the “VAT to VAT” reform. However, after the "business tax to value-added tax", when the tax rate is 3, only 3,000 yuan [103,000/(1 3) × 3] of value-added tax needs to be paid. According to this ratio, the “business tax to value-added tax” will reduce the tax burden of small-scale taxpayers in the catering industry by 41.75%. Obviously, compared with the current tax burden, the tax burden on small-scale taxpayers will definitely be reduced after the “VAT to VAT” reform. In addition, many in the catering industry are individual industrial and commercial households, and there are thresholds for business tax and value-added tax in my country. Catering enterprises with monthly sales (business) income not exceeding 30,000 yuan were originally exempted from business tax, and the transition from business tax to value-added tax During this period, the previous preferential policies should be extended and VAT exemption will continue.

2. General taxpayers

In the case that the value-added tax rate for the catering industry has been determined to be 6, compared with the previously applicable business tax rate of 5, it has increased by 1, but does this mean that What if the tax burden increases?

The first thing that needs to be made clear is that business tax is levied on turnover, while value-added tax is levied on the value-added part of goods or services. The catering industry provides finished catering products to customers by processing ingredients, which is characterized by direct material expenditure being the most important part of the cost. From the perspective of purchasing ingredients, processing ingredients, and selling products, the catering industry is different from other service industries that mainly rely on human resources, but has similarities with the manufacturing industry. However, since business tax cannot be deducted from input tax, taxpayers in the catering industry faced a large amount of double taxation before the “business tax to value-added tax” reform. That is, when purchasing direct materials, they actually paid the value-added tax on the materials, but when providing services, they had to include The turnover of material value-added tax is the basis for tax calculation and payment of business tax. After the "business tax to value-added tax" reform, taxpayers in the catering industry can eliminate repeated tax payments by obtaining value-added tax deduction certificates. For example, a restaurant purchases RMB 200,000 of raw materials that are subject to the tax rate of 13 and RMB 100,000 of raw materials such as wine and beverages that are subject to the tax rate of 17. If other costs are not considered, the restaurant’s monthly turnover is 2 million yuan. The monthly business tax payable before the "business tax to VAT" was 100,000 yuan (200×5). After the "business tax to value-added tax", the monthly value-added tax payable was 75,700 yuan [200/(1 6)×6-〔20/( 1 13)×13 10/(1 17)×17〕], the tax payable has also been reduced a lot compared to before.