Q:

One small size manufactory company owned by an individual which is a small-scale VAT payer. Is it possible for this factory to enjoy the preferential VAT policy for getting back to work and resumption of business?

A:

Yes, it is. According to the Announcement of the Ministry of Finance and the State Administration of Taxation on Supporting the Reinstatement of VAT Policies for Individual Businesses (No. 13 of 2020), this policy applies to all small-scale VAT taxpayers, whether they are enterprises or individual businesses as long as they are small All large-scale taxpayers can enjoy the preferential VAT policies that support the getting back to work and resumption of business.

Q:

One limited company is a small-scale VAT taxpayer who declares tax on quarterly basis. It sold 150,000 yuan of goods in January 2020. Its business closed in February due to the epidemic, but it is expected that the business will have sales of 50,000 yuan and 500,000 yuan for sell immovable property in March. There are no special invoices issued for related businesses. How to calculate and pay VAT in the first quarter?

A:

According to the Notice of the Ministry of Finance and the State Administration of Taxation on the Implementation of Inclusive Tax Reduction Policies for Small and Micro Enterprises  (Caishui [2019] No. 13) and the Announcement of the State Administration of Taxation on Issues Concerning the Collection and Management of VAT Exemption Policies for Small-scale Taxpayers '' (No. 4 of 2019) stipulated that the company had a total sales of 700,000 yuan in the first quarter. After deducting 500,000 yuan of the property sales, the sales of goods were 200,000 yuan, which did not exceed the quarterly tax exemption for small-scale taxpayers. Therefore, it can enjoy the exemption of VAT policy. However, it should be noted that the 5% levy rate applies to the sale of property, and the policy of reducing the VAT levied at the 1% levy rate does not apply. Therefore, 500,000 yuan obtained from the sale of property in the first quarter is subject to the calculation of VAT in accordance with the current policies for the sale of property.

Q:

One foreign trade company purchased a batch of carpets from a small VAT taxpayer in January this year and exported them to Thailand. The small taxpayer provided a special invoice with a 3% collection rate. Due to positive feedback from foreign customers, this company purchased another batch of carpets on March 1, and the collection rate on the special invoice provided at this time became 1%. So which tax refund rate should I use?

A:

According to the current policy, for export goods purchased from the foreign trade company who are small-scale taxpayers (except for goods with an zero export tax refund rate), the tax refund rate is the levy rate of small-scale taxpayers, which is the "Tax Rate" indicated in the column on the special invoice. If the "Tax Rate" column on the special invoice is 3%, the tax exemption will be applied according to the 3% tax refund rate; if the "Tax Rate" column on the special invoice is 1%, the 1% tax refund rate will be applied.

Q:

One cargo transportation company has registered as a small-scale taxpayer in Xuzhou, Jiangsu Province. As it is a nationwide order-to-run business, it is necessary to apply to the tax authorities in different places (including Hubei Province) to issue special invoices and pay taxes. After the promulgation of the VAT preferential policy to support the get back to work and resumption of business, will it have any impact on the application for invoice and tax payment?

A:

According to the Administrative Measures for Small-scale Taxpayers in the Cargo Transportation Industry to Apply for Special Invoices" (SAT Announcement No. 55 issued in 2017, according to the SAT Announcement No. 31 of 2018 and Amendment No. 45 of 2019) and The Announcement of the Ministry of Taxation on Supporting the Value-added Tax Policies for Individual Businesses to Get back to Work and Resumption of Business (No. 13 of 2020) stipulates that if a special invoice is required to be provided for the provision of highway cargo transportation services, the tax may be registered at the tax registration place, the place where the goods are shipped, and the place where the goods arrive or any place where the transportation business is contracted (including the place of the Internet logistics platform), apply to the nearest tax authority for a special invoice with a 1% collection rate, and pay the tax to the tax authority in accordance with the full tax amount indicated on the special invoice. As the tax registration is proceeded in Xuzhou, Jiangsu province, and it is not a small-scale taxpayer belong Hubei Province. To this end, when applying to the relevant tax authorities in Hubei Province to issue a special invoice to pay VAT, it can only enjoy a reduction of 1 % Levy rate is levied on the VAT policy but cannot be exempted.

Q:

One small size labor dispatch company who is a small-scale taxpayer, selected a 5% differential method to pay VAT. Will the VAT preferential policy for getting back to work and resumption of business be applied to this company?

A:

Notice of the State Administration of Taxation of the Ministry of Finance on Further Clarifying the Comprehensive Implementation of Pilot Policies on Labor Dispatching Services, Toll Road Toll Deductions, etc. (Caishui [2016] No. 47) and The Announcement of the Ministry of Taxation on Supporting the Value-added Tax Policies for Individual Businesses for Getting Back to Work and Resumption of Business (No. 13 of 2020) stipulates the company can choose to use the full price and out-of-price expenses as sales amount and calculate the VAT by reducing to 1% levy rate according to the simple tax calculation method. Otherwise it can chose a differential method, to use the full price and out-of-price expenses deduct the wages and benefits paid by the substitute labor unit to the dispatched employees and the social insurance and housing provident fund for them as the sales amount, and the VAT is calculated at the 5% rate based on the simple tax calculation method.