Tax rates for general taxpayers selling tap water

Ordinary taxpayers sell tap water with a tax rate of 13%, but they can also choose a simple method to calculate the tax at the withholding rate of 3%.

1. Article 2 of "Revised Provisional Regulations of the People's Republic of China on Value-Added Tax" VAT Rate:

(1) Taxpayers sell or import goods, except for specified items in this article

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Except for items (2) and (3), the tax rate is 17%.

(2) Taxpayers who sell or import the following products are subject to a tax rate of 13%:

1. Cereals, edible vegetable oil;

2. . Tap water, heating, air conditioning, hot water, coal gas, liquefied petroleum gas, natural gas, biogas, coal products for residential use;

3. Books, newspapers, magazines;

< p>4. Animal feed, chemical fertilizers, pesticides, agricultural machinerycoles, agricultural films;

5. Other property specified by the Council of State.

2. “Notice of the Ministry of Finance and the National Tax Administration on the policy of low VAT rates and simplified VAT collection for certain goods” (Finance and Taxation No. 20099): General taxpayers sell the following self-produced goods : You can choose to calculate and pay value added tax at the rate of 6% according to the simple method: 1. Electricity produced by small hydropower units at or below the county level. Small hydropower units refer to small hydropower units with an installed capacity of less than 50,000 kilowatts (including 50,000 kilowatts) built by various investment entities. 2. Sand, earth and stone used in construction and production of building materials. 3. Bricks, tiles and lime (excluding solid clay bricks and tiles) produced in continu from sand, soil, stone or other self-extracted minerals. 4. Biological products made from microorganisms, microbial metabolites, animal toxins, human or animal blood or tissues. 5. Tap water.

6. Commercial concrete (limited to cement concrete produced with cement as raw material). Once a general taxpayer has chosen the simplified method to calculate and pay VAT, it cannot be changed within 36 months. “Opinion of the Ministry of Finance and the State Administration of Taxation on Simplification of Value-Added Tax Collection Rate Policies” (Finance and Taxation No. 201457): 2. Article 2 of Document No. 9 of Finance and Taxation (2009)

(3) and 3 The article “according to the tax rate of 6%” is adapted to “according to the tax rate of 3%” .

To which industries is the 6% and 11% value added tax applicable?

The tax rate applicable to small taxpayers is 3%.

Special Provisions:

(1) General taxpayers who sell used items that cannot be deducted as inputs under the "Provisional Regulations of the People's Republic of China on added value. Tax" and which have not been deducted upstream. For fixed assets with a taxable base, value added tax is collected at the reduced rate of 3% and 2% according to the simplified method.

(2) Small taxpayers who sell their used capital assets will be charged value added tax at the reduced rate of 2%

(3) General taxpayers who sell the following self-produced goods can choose to calculate. and pay value added tax at the rate of 3% according to the simplified method:

1 .Small hydropower plants at the county level and belowElectricity produced by power units Small ones.Hydroelectric units refer to small hydroelectric units with an installed capacity of less than 50,000 kilowatts (including 50,000 kilowatts) constructed by various investment entities.

2. Sand, earth and stone used in construction and the production of building materials.

3. Bricks, tiles and lime (excluding solid clay bricks and tiles) produced continuously from self-extracted sand, earth, stone or other minerals.

4. Biological products made from microorganisms, microbial metabolites, animal toxins, human or animal blood or tissues.

5． Tap water.

6. Commercial concrete (limited to cement concrete produced with cement as raw material).

Once a general taxpayer has chosen the simplified method to calculate and pay VAT, it cannot be changed within 36 months.

(4) Ordinary taxpayers whoendent the following items must temporarily calculate and pay value added tax at the collection rate of 3% according to the simplified method:

1. Consignment stores sell items on consignment (including items for personal consignment by residents);

2. The pawnbroker sells pawned items.

3. Duty-free goods sold in duty-free stores approved by the State Council or the authority authorized by the State Council.

Tax payable for general taxpayers

The calculation formula is: tax payable = current output tax - current input tax

Output tax = sales × tax rate 'taxation

Sales = sales including tax ÷ (1 + tax rate)

Output tax: means the value added tax calculated on the basis of the sales tax rate and value added tax for taxable services provided by taxpayers.

Input tax:means the amount of value added tax paid or borne by taxpayers when purchasing goods or receiving processing, repair and repair services and taxable services.

Basic example

Company A purchased product A in April and paid a payment of 10,000 yuan, with input VAT of 1,300 yuan, and obtained a special invoice with VAT. The sales volume of product A including tax is 22,600 yuan.

Input tax=1,300 yuan

Output tax=22,600/(1+13%)×13%=2,600 yuan

Output tax pay=2,600- 1300= 1300

Small taxpayers

Tax to pay = sales × recovery rate

Sales = sales including tax ÷ (1 + recovery rate)

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If the sales volume of taxable services provided by an individual does not reach the VAT threshold, VAT will be exempt; If the sales amount reaches the VAT threshold, the full VAT amount will be calculated and paid. The VAT threshold is notIt does not apply to individual industrial and commercial households recognized as general taxpayers.

For those who pay taxes regularly, the monthly taxable sales are 5,000 to 20,000 yuan (inclusive). If the tax is paid by time, the sales amount per time (daily) is 300-500 yuan (inclusive).

On March 5, 2021, Premier Li Keqiang said in the "2021 State Council Government Work Report" that the value-added tax threshold for small taxpayers would increase from 100,000 yuan monthly sales of 150,000 yuan. Small and micro enterprises and individualsFor sports, industrial and commercial households whose annual taxable income is less than 1 million yuan, based on the current preferential policies, the income tax will be reduced by half

Tax rate of 11%: Transport land transport services (including rail), river transport,air transport and pipeline transport; universal postal services, special postal services and other postal services.

6% tax rate: modern service industry: R&D services and technical services, information technology services, cultural and creative services, logistics auxiliary services, authentication consulting services, radio, cinema and television services.

From July 1, 2017, the value-added tax rate simplification policy was officially implemented, and the tax rate of 13% on all products initially sold or imported was reduced to 11%. agricultural products, natural gas, edible products 23 product categories including salt and books.

On March 28, 2018, the executive meeting of the State Council decided to reduce the value-added tax rate in manufacturing and other industries from 17% to 16% effective May 1.i 2018, and reduce the value-added tax rate in transport, construction, infrastructure and other sectors. The value-added tax rate for sectors such as telecommunications services and agricultural products and other goods was reduced from 11% to 10%.

Detailed information

The applicable tax rates for general taxpayers are: 17%, 13%, 11%, 6%, 0%, etc.

1. The applicable tax rate of 17%: sales of goods or supply of processing, repair and repair services and imported goods. ?Provide rental services for tangible personal property.

2. 13% tax rate applicable On July 1, 2017, the state canceled the 13% tax rate and changed it to 11%.

3. The 11% tax rate applies: provision of services in the transport sector.

4. The applicable tax rate of 6%: provision of servicesmodern (except for rental services of tangible movable property).

5. 0% tax rate applicable: export of goods and other special businesses.

Reference documents

Reference documents:

VAT-Baidu Encyclopedia