Today (April 26), the State Administration of Taxation issued the "Announcement on Matters Concerning the "Reverse Invoicing" of Resource Recovery Enterprises to Sellers of Scrapped Products by Natural Persons, clarifying the specific measures and operational measures for "reverse invoicing" of resource recovery enterprises to sellers of scrapped products by natural persons.
The "Announcement" clarifies that from April 29, recycling enterprises that are willing to "reverse invoicing" can submit relevant information to the tax authorities, and after completing the prescribed simple procedures, they can conveniently realize "reverse invoicing" in the first time.
The invoicing party of "reverse invoicing" is a resource recovery enterprise, including both units and individual industrial and commercial households, which must have the qualifications to engage in the relevant recycling industry, and also need to actually engage in resource recovery business. The drawee is a natural person who sells scrapped products, including both natural persons who sell scrapped products used by themselves and natural persons who sell acquired scrapped products.
The "Announcement" clearly provides support to business entities engaged in resource recovery business. Sellers of scrapped products by natural persons are allowed to apply the VAT reduction and exemption policy for small-scale taxpayers. According to the announcement, sellers who sell scrapped products through "reverse invoicing" can enjoy preferential tax policies such as VAT exemption for small-scale taxpayers with monthly sales of less than 100,000 yuan and 3% levy rate minus 1% to calculate and pay VAT.
The relevant person in charge of the State Administration of Taxation said that after the implementation of "reverse invoicing", resource recovery enterprises will handle value-added tax and additional taxes and individual income tax payment on their behalf, which will reduce the tax burden of natural persons while reducing the tax and business risks of natural persons engaged in recycling business;
Source: CCTV News
