Q: I am an individual industrial and commercial household, and I am a small-scale VAT taxpayer who declares quarterly.On January 5, 2023, a special value-added tax invoice with a collection rate of 3% was issued by itself, which was provided to downstream customers for offsetting input tax, and the tax has not yet been declared.For this sales revenue, if I want to enjoy the 1% VAT reduction policy, do I have to recover the special invoices that have been issued with a 3% levy rate?

answer:《Announcement of the Ministry of Finance and the State Administration of Taxation on Clarifying Policies on Reduction and Exemption of Value-Added Tax for Small-scale Value-Added Taxpayers'(No. 1 of 2023) stipulates that from January 1, 2023 to December 31, 2023, the taxable sales income of small-scale value-added tax taxpayers shall be subject to a 3% levy rate, and the taxable sales income shall be levied at a reduced rate of 1%. VAT is levied at the rate.

If you obtain taxable sales income that is subject to a 3% levy rate, you can enjoy the policy of levying value-added tax at a 1% levy rate.However, special value-added tax invoices have the function of deduction. If you have issued special value-added tax invoices with a 3% levy rate to the buyer, you should recover all the special value-added tax invoices and invalidate them or issue red-letter special invoices as required. The VAT reduction policy applies to this business.Otherwise, it is necessary to declare and pay VAT at a rate of 3% on the taxable sales income for which special VAT invoices have been issued.