Expert tips for Yijiu

1. From April 1, 2022 to December 31, 2022, small-scale VAT taxpayers will be exempted from VAT on taxable sales income at a rate of 3%; Prepaid VAT items subject to 3% prepayment rate will be suspended.

2. If the labor dispatch is a small-scale taxpayer, there are two tax calculation methods to choose: you can choose to take the total price and extra price expenses obtained as the sales amount, and apply a 3% levy rate, then you can enjoy the VAT exemption policy;

3. Small scale taxpayers of labor dispatch can also choose to pay tax by difference. The balance of the total price and extra cost obtained, after deducting the wages and benefits paid by the substitute employer to the dispatched workers and handling social insurance and housing fund for them, is the sales amount, and the VAT is calculated and paid according to the simple tax method at a rate of 5%. In this way, the tax exemption policy is not available.

Beneficial presenter

Small and micro enterprises

Beneficial industries

Labor dispatch industry

Benefits

VAT exemption

Expert suggestion of Yijiu

At this time, small-scale labor dispatching companies can choose to apply the tax exemption policy by applying the 3% tax rate of the total amount.

If you need to self check tax compliance or solve more difficult tax problems, please contact Yijiu experts for free consultation

key word

Small scale labor dispatch is exempt from VAT

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In order to further support the development of small and micro enterprises, the Ministry of Finance and the State Administration of Taxation jointly made and issued an announcement that from April 1, 2022 to December 31, 2022, small-scale VAT taxpayers will be exempt from VAT on taxable sales income at a rate of 3%; Prepaid VAT items subject to 3% prepayment rate will be suspended.

Q: Our company is a small labor dispatching company and belongs to a small-scale VAT taxpayer. Previously, our company chose to pay VAT by 5% difference. Can we apply the VAT exemption policy for small-scale taxpayers?

Answer: According to Article 1 of the Notice of the Ministry of Finance and the State Administration of Taxation on Further Clarifying the Policies on Labor Dispatching Services and Toll Road Toll Deduction in the Comprehensive Implementation of the Pilot Program of Replacing Business Tax with VAT (CS [2016] No. 47), small-scale taxpayers provide labor dispatching services, and pay value-added tax at a rate of 3% based on the simple tax calculation method, taking the total price and extra price as the sales amount; You can also choose to pay tax by difference. The sales amount is the balance of the total price and extra price expenses obtained, after deducting the wages and benefits paid by the substitute employer to the dispatched workers and handling social insurance and housing fund for them, and the VAT is calculated and paid according to the simple tax method at a rate of 5%.

The Announcement of the Ministry of Finance and the State Administration of Taxation on Exempting Small scale VAT Taxpayers from VAT (No. 15, 2022, the Ministry of Finance and the State Administration of Taxation) stipulates that from April 1, 2022 to December 31, 2022, small scale taxpayers will be exempted from VAT by applying the taxable sales income at a rate of 3%.

Therefore, from April 1, 2022 to December 31, 2022, your company can choose to take all the price and extra price expenses obtained as the sales volume and enjoy the VAT exemption policy; You can also choose to pay tax by difference. The sales amount is the balance of the total price and extra price expenses obtained, after deducting the wages and benefits paid by the substitute employer to the dispatched workers and handling social insurance and housing fund for them, and the VAT is calculated and paid according to the simple tax method at a rate of 5%.