202 1 new food and beverage tax exemption policy

Legal analysis: VAT taxpayers in catering industry are divided into general taxpayers and small-scale taxpayers. The applicable tax rate for general taxpayers providing catering services is 6%, and the applicable tax rate for small-scale taxpayers providing catering services is 3%. Catering enterprises with annual sales exceeding 5 million yuan shall be registered as general taxpayers. Small-scale enterprises with sound accounting can also apply to the competent tax authorities for registration as general taxpayers.

Legal basis: Article 10 of the Provisional Regulations on Value-added Tax in People's Republic of China (PRC), the fixed assets that cannot be deducted and the input tax is not deducted shall be subject to the value-added tax at a reduced rate of 2% according to the simple method.