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Is registered a company to choose general taxpayer or small-scale taxpayer?Many new entrepreneurs struggle. Here are some tips:

 

1. Look at scale.If the company's investment scale is large, the annual sales revenue will soon exceed 5 million yuan, it is recommended to directly identify as the general taxpayer.If the company's monthly sales are estimated to be less than 100,000 yuan, it is recommended to select small-scale taxpayers, who will enjoy VAT exemption from January 1, 2019.

 

Look at the buyer.If your purchasers expect to be mainly large customers in the future, it is likely that they will not accept VAT invoices with a 3% levy rate. It is recommended to identify general taxpayers directly, otherwise choose small-scale taxpayers.

 

3. Look at the deduction.If your company's costs and expenses constitute a high proportion of special VAT invoices, input tax deduction is sufficient, through the calculation of estimated VAT tax less than 3%, it is recommended to choose the general taxpayer, otherwise choose small-scale taxpayers.

4. Look at the industry.If it's a 16% tax industry, it's an asset-light industry.This kind of industry general value added tax burden is higher, the proposal chooses small-scale taxpayer, choose otherwise general taxpayer.

 

5. Look for deals.See if your industry can sell VAT preferential policies.For example, the software enterprise VAT tax return and other VAT preferential policies, if you can enjoy, it is recommended to choose the general taxpayer, otherwise choose small-scale taxpayers.

 

Can general taxpayer and small scale taxpayer convert each other?

 

(1) original regulation: small-scale taxpayers can apply to become general taxpayers, but general taxpayers shall not be converted into small-scale taxpayers.

 

(2) new regulation: China will raise the annual sales standard for small-scale taxpayers of industrial and commercial enterprises from 500,000 yuan and 800,000 yuan to 5 million yuan, and allow enterprises registered as general taxpayers to be registered as small-scale taxpayers within a certain period of time, so that more enterprises can enjoy the preferential tax calculated at a lower levy rate.