Relevant regulations and knowledge:

(1) According to Article 2 of the Announcement of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Issues Related to Exemption of Small and Micro Enterprises from VAT and Business Tax, small-scale VAT taxpayers engaged in business tax taxable items shall separately account for the sales of VAT taxable items and the turnover of business tax taxable items. If the monthly sales amount does not exceed 30,000 yuan (90,000 yuan is paid quarterly), the value-added tax shall be exempted; If the monthly turnover does not exceed 30,000 yuan (90,000 yuan is paid quarterly), the business tax shall be exempted.

(2) VAT small-scale taxpayers who meet the conditions of temporary exemption from VAT shall be calculated on a monthly basis. If the sales in the current month exceed 30,000 yuan, the full payment of VAT will not affect the tax exemption in the next month. Similarly, for small-scale VAT taxpayers whose tax payment period is 1 quarter, the full amount of VAT paid when the quarterly sales exceed 90,000 yuan will not affect the tax exemption in the next quarter.

(3) According to Article 30 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-added Tax, the sales of small-scale taxpayers do not include their tax payable. If small-scale taxpayers adopt the combined pricing method of sales amount and tax payable, the sales amount shall be calculated according to the following formula: sales amount = sales amount including tax /( 1+ collection rate).

Taxation refers to the currency or material objects collected by the state from enterprises, collectives and individuals: taxes, tax amounts, tax rates, tax laws, tax systems, taxes, etc.