How do shops, hotels and so on collect taxes?

Shops: VAT, income tax and consumption tax.

Hotel: business tax, income tax and consumption tax.

Income tax:

People's Republic of China (PRC) Enterprise Income Tax Law: Article 1 Enterprises and other income-earning organizations (hereinafter referred to as enterprises) are taxpayers of enterprise income tax in People's Republic of China (PRC) and pay enterprise income tax in accordance with the provisions of this Law. This law is not applicable to sole proprietorship enterprises and partnership enterprises.

Therefore, in China, as long as you have income, you need to pay income tax, which is divided into corporate income tax and personal income tax.

Consumption tax: gold and silver ornaments, cosmetics and luxury goods (watches) in shops.

Hotel: All kinds of wine.

VAT:

Provisional Regulations on Value-added Tax in People's Republic of China (PRC) Article 1 Units and individuals that sell goods or provide processing, repair and replacement services and import goods in People's Republic of China (PRC) are taxpayers of value-added tax (hereinafter referred to as taxpayers) and shall pay value-added tax in accordance with these regulations.

Therefore, people who sell goods must pay VAT.

Provisional Regulations of the People's Republic of China on Business Tax Article 1 Units and individuals that provide services specified in these regulations (hereinafter referred to as taxable services), transfer intangible assets or sell real estate in People's Republic of China (PRC) are taxpayers of business tax (hereinafter referred to as taxpayers) and shall pay business tax in accordance with these regulations.

It can be seen that the business tax is paid for providing labor services (excluding repair and replacement, which requires VAT).

In China, the scope of collection of value-added tax and business tax do not overlap with each other, and those who collect value-added tax will no longer collect business tax. However, in actual economic activities, there are two kinds of taxable behaviors, namely, taxpayers run part-time or mixed operations.

A sales behavior involving both VAT taxable goods and business tax taxable services is regarded as mixed sales behavior. For example, taxpayers sell goods and are responsible for transportation. Selling goods belongs to the scope of value-added tax collection, and transportation belongs to the scope of business tax collection. The tax treatment for this is that taxpayers who are mainly engaged in the production, wholesale or retail of goods (that is, taxpayers' annual sales turnover of goods accounts for more than 50% of their total turnover) are regarded as selling goods and no business tax is levied; Other taxpayers who are not engaged in the production, wholesale and retail of goods are regarded as taxable services of business tax, and no value-added tax is levied.

Different from mixed sales behavior, part-time sales behavior means that taxpayers engage in VAT taxable behavior and business tax taxable behavior at the same time, and there is no direct connection and subordinate relationship between them. The tax treatment method for this is to require taxpayers to separate the two accounts and pay taxes separately. If it cannot be accounted for separately or the accounting is inaccurate, value-added tax will be levied on all of them.

Other special taxable scope of value-added tax also includes: physical delivery of commodity futures, pawn sales, production and sales of philatelic products by non-postal departments (postal departments pay business tax on production and sales of philatelic products) and so on.