Pay VAT rate for travel expenses to overseas travel companies

Taxpayers providing tourism services should pay value-added tax in accordance with "Life Services-Tourism and Entertainment Services-Tourism Services". The applicable tax rate for tourism services is 6%. The applicable tax rate for small-scale taxpayers providing tourism services is 3%. . Generally speaking, the VAT taxable sales amount is the entire price obtained and extra-price expenses.

However, taxpayers providing tourism services are exempt. According to the "Notice of the Ministry of Finance and the State Administration of Taxation on Comprehensively Launching the Pilot Program of Replacing Business Tax with Value-Added Tax" (Caishui [2016] No. 36), Annex 2 "Provisions on Matters Relevant to the Pilot Program of Replacing Business Tax with Value-Added Tax" Article 1, Paragraph 3 Eight items: "Pilot taxpayers who provide tourism services can choose to deduct the accommodation fees, catering fees, transportation fees, visa fees, The balance after ticket fees and travel expenses paid to other group tour companies is sales volume.

" Pilot taxpayers who provide tourism services can choose the differential tax method, which is not a simplified tax method. The difference is used as the basis for calculating VAT. Therefore, for general taxpayers who choose this method, in addition to the expenses that should be deducted from sales, other normal input tax can still be deducted.

Of course, general taxpayers can also choose to use the entire price and extra-price expenses as the VAT taxable sales, and pay corresponding accommodation fees, catering fees, transportation fees, visa fees, ticket fees and The value-added tax borne on the travel expenses paid to other group tour companies shall be deducted with the tax deduction certificate. Small-scale taxpayers providing tourism services should calculate and pay value-added tax at a 3% tax rate based on the difference.