suppose that all purchases of the company have input invoices, and all customers who sell them have to issue 17% invoices. The advantage of being a general taxpayer lies in the gross profit margin of the goods. According to sales excluding tax × gross profit margin ×17%= sales excluding tax ×3%, it can be concluded that the gross profit margin is 24%.

That is to say, when the company's gross profit margin is greater than 24%, small-scale taxpayers are more cost-effective and pay less taxes.

If the gross profit margin is less than 24%, the average taxpayer will pay less tax.

Note:

If the company doesn't have a reasonable input invoice, it is really uneconomical to become a general taxpayer. If the customer wants to issue an invoice, the company has to pay 17% to the tax bureau.

related description:

1. The requirements for small-scale to general taxpayers are the same, except for some differences in turnover or sales in different industries. 2. As far as the tax department is concerned, it is hoped that ordinary enterprises will become ordinary taxpayers, which indicates that enterprises are more standardized and easier to manage.

3. The general competent tax authorities are qualified for accreditation.

4. apply to the competent tax authorities for the qualification of becoming a general taxpayer.

5. In addition to the qualified sales volume, there should also be a financial management system and an invoice document management system. There should be a safe or a tin filing cabinet to manage the invoices. When necessary, the tax authorities will make on-site inspections, and the accounts should be standardized and the accounting should meet the requirements of tax laws and accounting standards.