Value-added tax (VAT)

The tax items of value-added tax:

The scope of business tax to value-added tax is mainly involved in the transportation industry and some modern service industries.

The transportation industry includes: land transportation, waterway transportation, air transportation and pipeline transportation.

The modern service industry includes: research and development and technology services, information technology services, cultural and creative services, logistics support services, tangible movable property leasing services, and forensic consulting services.

Tax headings refer to specific tax items specified in the tax law for the classification of taxable objects, reflecting the specific scope of taxation and defining the quality of taxable objects. Commodity tax item 4001 is the industry code. p>Because VAT implements a system of tax deduction on the basis of special VAT invoices, it requires a high level of accounting for taxpayers, which requires the ability to accurately account for output tax, input tax and tax payable.

But the actual situation is that there are many taxpayers can not meet this requirement, so the Provisional Regulations on Value-added Tax of the People's Republic of China divide taxpayers into general taxpayers and small-scale taxpayers according to the size of their business and the soundness of their accounting.

Individuals are exempted from VAT if their sales of taxable services do not reach the VAT threshold; if they do, they are required to pay VAT in full. The VAT threshold does not apply to individual industrial and commercial households recognized as general taxpayers.

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