Will the hotel industry be exempted from VAT in 2020?

Will the hotel industry be exempted from VAT in 2020?

Yes

Announcement on Supporting Tax Policies for Prevention and Control of Pneumonia in novel coronavirus (Announcement No.8 of Ministry of Finance and State Taxation Administration of The People's Republic of China, 2020)

5. Taxpayers' income from providing public transportation services and life services and providing residents with express delivery services of essential materials is exempt from value-added tax. The specific scope of public transport services shall be implemented in accordance with the Provisions on Relevant Matters Concerning the Pilot Project of Changing Business Tax to VAT (Cai Shui [2016] No.36).

For the specific scope of life service and express delivery service, please refer to Notes on Sales Service, Intangible Assets and Real Estate (Caishui [2065438+06] No.36).

Announcement on Supporting Tax Collection and Management for Prevention and Control of Pneumonia Infection in novel coronavirus (State Taxation Administration of The People's Republic of China Announcement No.4, 2020)

Three, taxpayers in accordance with the relevant provisions of Announcement No.8 and Announcement No.9 apply the policy of exemption from value-added tax, and shall not issue special invoices for value-added tax; If a special VAT invoice has been issued, the corresponding red-letter invoice should be issued or the original invoice should be invalidated, and then the VAT exemption policy should be applied to issue ordinary invoices according to regulations. If a taxpayer has issued a special VAT invoice during the epidemic prevention and control period, but fails to issue it in time according to the provisions of this announcement, the VAT exemption policy can be applied first, and the corresponding red-ink invoice can be issued within 1 month after the implementation of the relevant VAT exemption policy expires.

Matters related to exemption from value-added tax during the epidemic period

1. Is it a long-term policy to exempt life services affected by the epidemic from VAT?

It is not a long-term policy to exempt life services affected by the epidemic from value-added tax. It is a temporary policy for the government to use tax tools to support enterprises that provide people's livelihood services during the epidemic period. The specific deadline depends on the development of the epidemic, and taxpayers need to pay attention to national policies at any time.

Policy basis: Announcement on Supporting Tax Policies for Prevention and Control of Pneumonia Infection in novel coronavirus (Announcement No.8 of Ministry of Finance and State Taxation Administration of The People's Republic of China in 2020).

2. Enjoy the VAT exemption policy during the epidemic period, but a special VAT invoice has been issued. When must the invoice be issued?

If the enterprise fails to issue the corresponding red-ink invoice in time, it can first apply the VAT exemption policy and issue the corresponding red-ink invoice within 1 month after the relevant VAT exemption policy expires.

Policy basis: Article 3 of the Announcement of State Taxation Administration of The People's Republic of China on Supporting Tax Collection and Management Matters Related to Prevention and Control of Pneumonia Infection in novel coronavirus (Announcement No.4 of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC), 2020).

During the epidemic, I enjoyed the VAT exemption policy. Can the corresponding investment be deducted?

Enjoy the business exempted from value-added tax, and the corresponding input shall not be deducted.

Policy basis: Article 27 of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Comprehensively Promoting the Pilot Project of Changing Business Tax to Value-added Tax (Cai Shui [2016] No.36).

4. The corresponding entries are not accounted for separately and cannot be divided. How do we get them out?

The corresponding input for tax-free items should be accounted for separately. If it cannot be divided, it shall be calculated according to the following formula: non-deductible input tax amount = total non-divisible input tax amount in the current period × (sales of taxable items with simple tax calculation method in the current period+sales of VAT-exempt items) ÷ total sales amount in the current period.

Policy basis: Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance on Comprehensively Promoting the Pilot of Changing Business Tax to VAT (Caishui [2065438+06] No.36).

Will the hotel industry be exempted from VAT in 2020? However, the tax authorities of different provinces and cities have different tax policy requirements for the hotel industry, and the hotel industry finance should deal with tax issues according to the latest policy requirements announced by the local tax authorities. In addition, the exemption from value-added tax is only temporary and cannot be exempted forever. Finance should also pay attention to policy changes.