Why is the hotel invoice tax rate 1%?

The hotel invoice tax rate is 1% because:

1. The hotel belongs to the general taxpayer and adopts the general taxation method, and the applicable tax rate is 6%.

2. During the epidemic period, in order to reduce the burden on small and micro enterprises, according to People's Republic of China (PRC) State Taxation Administration of The People's Republic of China AnnouncementNo. 13 (2020), from March 1 day to May 3 1 day in 2020, small-scale taxpayers of value-added tax in Hubei Province will be exempted from value-added tax. Except Hubei Province, small-scale VAT taxpayers in other provinces, autonomous regions and municipalities directly under the Central Government collect taxable sales income at the rate of 3%, and collect VAT at the reduced rate of 1%.

3. During the epidemic, hotels can enjoy the preferential policies of the state. From March 1 day to May 3 1 day, 2020, the small-scale taxpayers of value-added tax in Hubei Province will be subject to the taxable sales income value-added tax at a reduced rate of 3%. Except Hubei Province, small-scale VAT taxpayers in other provinces, autonomous regions and municipalities directly under the Central Government collect taxable sales income at the rate of 3%, and collect VAT at the reduced rate of 1%.

The above information is about the hotel invoice tax rate 1%. I hope I can help you.