Tax Saving By Using Concurrent Business Activities

A hotel is a newly opened high-end hotel in Beijing. It is mainly for business people from abroad. Therefore, in order to provide better services and meet the needs of guests, A Hotel operates a large commodity department on the ground floor, and there are many kinds of merchandise, many of which have Chinese characteristics and are loved by customers.

In a month, A Hotel earned 4 million 500 thousand yuan in revenue by providing accommodation and catering services, and earned 800 thousand yuan in revenue from operating commodities.

However, due to the lack of experience of financial personnel, there is no in-depth study of the tax law. Therefore, when calculating income, the two incomes are not accounted for separately. Finally, when they declare tax, they can only pay VAT on all their income, which aggravates the tax burden of A hotels.

According to the current circulation tax system, all the goods sold and processed or repaired and repaired should be subject to value added tax. Business tax will be imposed on the provision of taxable services, the pfer of intangible assets or the sale of immovable property.

The two taxes stand side by side, which means that once certain behavior is determined to impose VAT, no business tax will be imposed, and vice versa.

In the actual operation, taxpayers in addition to the main business tax revenue scope of the project, but also run a tax on the scope of value-added tax items, tax law called "quot; concurrently".

In the above cases, the catering and accommodation services operated by the A Hotel belong to the business tax levy scope, while the commodity department belongs to the sale of goods, and the value added tax shall be levied.

Therefore, the mode of operation of A hotel should belong to part-time business.

In the detailed rules for the implementation of the Provisional Regulations on the business tax of the people's Republic of China, the regulations stipulate that taxpayers who engage in taxable services and goods or non taxable services shall separately calculate the turnover of taxable services and the sales volume of goods or non taxable services.

If the accounting services can not be accounted for or can not be accurately accounted for, the value-added tax shall be levied on the taxable labor service and goods or non taxable services, rather than the business tax.

According to this regulation, the A hotel should pay the value-added tax (450+80) x 17% = 1 million 1 thousand yuan for all revenue because it has not calculated the sales tax and the income from the sales tax and the sales tax for VAT separately.

If the A Hotel calculates two taxable income separately, it only needs to pay a value-added tax of 80 x 17% = 136 thousand yuan and a business tax of 450 x 5% = 225 thousand yuan, with a total taxable 361 thousand yuan and a tax saving 640 thousand yuan.

Therefore, separate accounting for part-time activities can save taxes.

The current policy of business tax on the business tax is divided into the following sections: the taxpayers' concurrent business must be accounted for separately according to the tax items of different tax categories, and they should be declared and paid separately. The goods sold by taxpayers or the non taxable services and the taxable services belonging to the scope of business tax shall be accounted for separately.

Among them, the so-called non taxable services refer to the processing, repair and repair and sewing services, which belong to the scope of the value-added tax. When taxpayers engage in separate business accounting or can not accurately calculate, the taxable labor and value-added tax shall be levied together with goods or non taxable services, and no business tax shall be collected.

The purpose of the above principles is to simplify the collection and management of taxpayers, and to urge taxpayers to truly calculate and reflect the turnover and sales volume of business tax and value added tax.

In addition to explicitly accounting for the part-time business and avoiding unnecessary tax burden and achieving the purpose of tax saving, taxpayers should also distinguish between part-time business and mixed sales behavior.

The tax law stipulates that a sales act, if it involves both the taxable service of business tax and the sale of value-added tax, is called mixed sale.

Specifically, there are two points for the establishment of mixed sales behavior: first, the sales behavior must be one; two, it must involve both taxable services and sales of goods.

The current policy of business tax on the business tax is divided into the following: the mixed sale behavior of enterprises, enterprises or individual operators engaged in goods production, wholesale or retail is regarded as selling goods without levying business tax; the mixed sale behavior of other units and individuals is regarded as providing taxable services, and the business tax shall be levied.

According to the above provisions, we can see that the difference between mixed sale behavior and concurrently running behavior is that the mixed sales behavior emphasizes a sales behavior and involves the sale of taxable services and goods, which only refers to the mixture of taxable services and the sale of goods.

From the point of view of goods, concurrent business means that taxable services and goods are not sold simultaneously in a sales activity. From the point of view of labor services, both taxable and non taxable services occur simultaneously.

To sum up, the principle of dividing the scope of two tax collection can be summarized as follows: the mixed sale behavior is divided according to the enterprise object; the concurrent business behavior is accounted for separately, and the value-added tax is levied separately.

Because of the confusion between practice and mixed marketing, taxpayers should keep in mind the principles and criteria of the two kinds of behaviors, and do the best to comply with both the tax law and the unnecessary tax burden.