There are five authorized duty-free operators in China, namely: China Exemption Company, Shenzhen State-owned Duty-free Commodity (Group) Co., Ltd., Zhuhai Duty-free Enterprise Group Co., Ltd., Japan Duty-free Bank (Shanghai) Co., Ltd. and the newly established Hainan Duty-free Commodity Management Company.
However, only visa-free companies in China can operate zero-tax services at major airports, ports and border ports across the country, and there is no geographical restriction. Other companies are all zero-tax operators operating in a regional or bidding pilot mode.
2. The preferential scope of VAT is different from that of input tax deduction.
The zero VAT rate is not only that the value-added part of this transaction link (or circulation link) does not need to pay VAT, but also that the accumulated value-added amount of each previous transaction link (or circulation link) does not need to pay VAT, specifically, the input tax is allowed to be deducted.
However, tax exemption is only the part of the value-added amount of this transaction (or circulation link) that does not need to pay value-added tax, and it is not allowed to deduct the input tax and be included in the transaction cost. If it has been deducted from tax and accounting, it needs to be transferred out.
3. Different tax management requirements.
Zero tax rate is a kind of VAT rate. As long as they meet the requirements of the tax law, they can apply, and the tax authorities in charge of tax refund can apply for VAT refund (exemption) on a monthly basis.
Tax exemption is a preferential tax policy and generally needs to be reported to the tax authorities for the record.
4. Different backgrounds
The zero tax rate is formulated according to the average bearing capacity of the overall situation of social and economic development, which meets the requirements of universality and generality.
However, in different industries, different regions, different taxpayers and tax collectors, it is often necessary to set out from reality and give special provisions to some regions, industries, industries or taxpayers and tax collectors who need support, encouragement or care, which embodies the principle of adapting to local conditions, treating them differently and paying a reasonable burden.
Legal basis: Article 2 of the Provisional Regulations of People's Republic of China (PRC) on Value-added Tax:
(1) Unless otherwise specified in items 2, 4 and 5 of this article, the tax rate of taxpayers selling goods, services, tangible movable property leasing services or imported goods is 17%.
(2) Taxpayers sell transportation, postal services, basic telecommunications, construction and real estate leasing services, sell real estate, transfer land use rights, and sell or import the following goods at the tax rate of 1 1%:
1. Agricultural products such as grain, edible vegetable oil and edible salt;
2 residents tap water, heating, air conditioning, hot water, gas, liquefied petroleum gas, natural gas, dimethyl ether, biogas, coal products;
3 books, newspapers, magazines, audio-visual products and electronic publications;
4. Feeds, fertilizers, pesticides, agricultural machinery and plastic films;
5. Other goods specified by the State Council.
(3) Unless otherwise stipulated in Items 1, 2 and 5 of this article, the tax rate for taxpayers selling labor services and intangible assets is 6%.
(4) taxpayers export goods at zero tax rate; However, unless otherwise stipulated by the State Council.
(five) domestic units and individuals cross-border sales of services and intangible assets within the scope of the State Council, the tax rate is zero.
The adjustment of tax rate is decided by the State Council.
skill
The above answer is only for the current information combined with my understanding of the law, please refer carefully!
If you still have questions about this issue, I suggest you sort out relevant information and communicate with professionals in detail.