What is the difference between business tax and value-added tax?

What's the difference between business tax and value-added tax for Bian Xiao, who likes to settle accounts today?

Business tax and value-added tax are turnover taxes, which are mutually exclusive; In other words, a sum of income (or a part of income) must pay either value-added tax or business tax, and will not be paid at the same time.

However, it is not optional, but determined by the nature of the business. The specific differences between the two are as follows

1, different tax ranges:

Value-added tax is a tax levied on the value-added of units and individuals who sell goods or provide processing, repair and replacement services and import goods.

Its collection scope includes selling goods, providing processing and repair services and importing goods;

Business tax is a tax levied on the turnover of units and individuals that provide taxable services, transfer intangible assets or sell real estate in China.

Providing taxable services, transferring intangible assets or selling real estate in China;

Specifically, it includes services provided by transportation, construction and installation, finance and insurance, post and telecommunications, culture and sports, entertainment and service industries, as well as the transfer of intangible assets and the sale of real estate.

2. The tax bureaus are different: the former is levied in the national tax and the latter in the local tax.

3. Different tax rates (collection rate):

Value-added tax: according to whether the financial accounting is sound and whether the sales amount reaches the standard, it is divided into small-scale taxpayers and general taxpayers;

The former levy rate is 3%, and the latter tax rate is: 17%, 13%, 0 (the tax rate is different according to the goods sold);

Business tax rate: different tax rates are stipulated according to different industries, ranging from 3% to 20%.

4. VAT is extra-price tax, and tax is extra-price.