Explain the difference between the small-scale taxpayer and the general taxpayer in Chinese enterprises

2020/11/05

At present, taxpayers mainly consist of Chinese enterprises' small-scale taxpayers (small and micro enterprises) and general taxpayers. In order to understand what kind of taxpayers they belong to when running their own enterprises, we need to understand the differences between them.

1. Different sales control: According to the "Pilot Implementation Measures for replacing Business Tax with VALUE-ADDED Tax", taxpayers are divided into general taxpayers and small-scale taxpayers.The taxpayer whose annual taxable sales amount exceeds the standard stipulated by the Ministry of Finance and the State Administration of Taxation (hereinafter referred to as taxable sales amount) is a general taxpayer, and the taxpayer whose annual taxable sales amount does not exceed the standard is a small-scale taxpayer.Note: the above "annual VAT sales volume of RMB 5 million" refers to the continuous and cyclical 12 months and is not a tax year.

2. Different tax rates: for small-scale taxpayers, the levy rate is 3% except 5% for leasing and selling immovable property;General taxpayer value added tax is divided into 6%, 9%, 10%, 13% several tax rates.In addition, some export goods, cross-border sales services and intangible assets of domestic units and individuals can enjoy zero tax rate, while cross-border sales eligible for exemption can enjoy tax exemption.

3. Different VAT calculation methods: small-scale taxpayers are exempt from tax of 300,000 yuan per quarter, exceeding VAT = sales volume *=3%, VAT additional tax = VAT *12%;General taxpayers should pay VAT = output tax - input tax.

4. Different input deduction: small-scale taxpayers cannot deduct input tax, while general taxpayers can deduct input tax in accordance with the general tax method.

5, accounting and tax requirements are different: at present, our country for small-scale taxpayers accounting and tax management is relatively loose, but for the general taxpayer, the requirements are relatively high.Therefore, the cost of bookkeeping agency will be different, the cost of the general taxpayer is relatively high.

6. Different reporting periods: small-scale taxpayers can choose to report and pay tax on a monthly or quarterly basis, and they usually choose quarterly reporting;But the general taxpayer usually carries on the tax return on a monthly basis.

7. Different requirements from upstream and downstream of the industry: If the purchaser is a general taxpayer, the purchaser will generally hope that the supplier is also a general taxpayer, because only in this way can the purchaser obtain a special VAT invoice with a higher tax rate and deduct more input tax.At present, one of the prerequisites for Tmall platform entry is that it must be a general taxpayer.

8. Different preferential tax policies: Small-scale VAT taxpayers with quarterly sales of less than 300,000 yuan (inclusive) are exempt from VAT.Resource tax, urban maintenance and construction tax, real estate tax, urban land use tax, stamp tax (excluding stamp tax on securities transactions), farmland occupation tax, education fee surcharge and local education surcharge will be reduced within 50% of the VAT amount for small-scale taxpayers.Average taxpayer cannot enjoy above preferential policy.There are also tax exemptions and tax rebates for small-scale taxpayers in some areas of China.

9. Different conditions for conversion: small-scale taxpayers who meet the requirements for general taxpayers may apply to the competent tax authorities for conversion into general taxpayers;Before December 31, 2020, general taxpayers can choose to be re-registered as small-scale taxpayers. If the taxable sales exceed 5 million yuan in 12 consecutive months or 4 quarters after the re-registration, they shall be re-registered as general taxpayers and shall not be re-registered as small-scale taxpayers (2 conversion forms).