2021-03-08 Ordinary VAT taxpayer /Small scale taxpayer

 Ordinary VAT taxpayer /Small scale taxpayer

 

Definition：The standard for Small scale taxpayers is that the annual sales of VAT should be 5 million yuan or less. From May 1, 2018

The difference between Ordinary VAT taxpayer  and Small scale taxpayer： 

1.The tax point of small scale taxpayer is low; the tax point of ordinary VAT taxpayer is high, but it can use input tax deduction.

 2. Small scale taxpayer can not issue Special Invoice. If Special Invoice is needed, it can only be issued by tax bureau. Ordinary VAT taxpayer can issue Special Invoice and General Invoice.

 3.The use of invoices is different. Small scale taxpayer can only use ordinary invoice for sales, not Special Invoice. When purchasing goods, they can receive both General Invoice and Special Invoice. Ordinary VAT taxpayers can accept Special Invoice to deduct tax, while General Invoice can not deduct tax. Small scale taxpayers can't deduct tax no matter whether they accept Special Invoice or not.

4.The calculation method of tax payable is different. The Ordinary VAT taxpayer calculates the tax according to the "deduction system", that is, the tax is calculated according to the balance after the output and input. Small scale taxpayers calculate the tax payable by multiplying the amount of sales revenue divided by (1 + applicable tax rate) by the tax rate, 6% for Industry and 4% for business.

 5. Different tax rates, Ordinary VAT taxpayer ：0%, 13% and 16%. Small scale taxpayers, commercial enterprises 4%, industrial enterprises 6%。