Group 1 - The Cultural Undertaking Construction Fee is a non-tax revenue imposed by the government to promote the healthy development of cultural undertakings, primarily used for macro-control of socialist spiritual civilization and cultural construction [1][2]. - The fee is applicable to advertising service providers and entertainment service providers operating within the People's Republic of China, including foreign entities and individuals [1][2]. - The fee amount is calculated at a rate of 3% of the billing sales revenue from advertising and entertainment services [1][2]. Group 2 - The obligation to pay the Cultural Undertaking Construction Fee coincides with the VAT tax obligation of the payer [2]. - The payment location for the fee is the same as that for the VAT tax [2]. - There are tax exemptions for small-scale taxpayers whose monthly sales do not exceed 20,000 yuan (or 60,000 yuan quarterly) [2]. Group 3 - Relevant policy documents include notices from the Ministry of Finance and the State Administration of Taxation regarding the management of the Cultural Undertaking Construction Fee [2]. - Taxpayers who do not reach the VAT threshold are exempt from the Cultural Undertaking Construction Fee [2].

Core Viewpoint - The article discusses the necessity of declaring unbilled income for VAT purposes, the consequences of failing to do so, and the procedures for making such declarations. Group 1: VAT Declaration Requirements - Unbilled income must be declared for VAT purposes as it is included in the taxable income alongside billed income and other types of income [3] - The VAT declaration includes various income types, and unbilled income is explicitly required to be reported [3] Group 2: Consequences of Non-Declaration - Failure to declare unbilled income can lead to penalties, including fines ranging from 50% to five times the unpaid tax amount, and potential criminal charges for tax evasion [4] Group 3: VAT Declaration Procedures - For general VAT taxpayers, unbilled income should be reported in the specified section of the VAT declaration form [6] - Small-scale VAT taxpayers with quarterly sales not exceeding 300,000 must report unbilled income directly in the appropriate sections of their VAT declaration form [6][14] - If a small-scale taxpayer's quarterly sales exceed 300,000, they must report the unbilled income in the relevant sections of the VAT declaration form, indicating the applicable tax rate [14] Group 4: Adjustments After Invoice Issuance - General VAT taxpayers can report unbilled income as a negative value in the declaration form if they later issue an invoice for that income, effectively reducing their reported sales for that period [19] - Small-scale VAT taxpayers must combine all sales income, including both billed and unbilled, to determine eligibility for tax exemptions [11]

Core Viewpoint - The article discusses the VAT exemption policy for small-scale taxpayers in China, detailing specific scenarios under which they can benefit from tax exemptions based on their sales amounts [1]. Summary by Sections VAT Exemption Policy - From January 1, 2023, to December 31, 2027, small-scale VAT taxpayers are exempt from VAT if their total monthly sales do not exceed 100,000 yuan (or 300,000 yuan for quarterly taxpayers) [1]. Examples of Tax Scenarios - **Example B**: Company B, with a total sales of 280,000 yuan in Q2 2025, only issued VAT special invoices. Since the sales exceeded 300,000 yuan, they must pay VAT [4]. - **Example C**: Company C issued 10,000 yuan in VAT special invoices and 270,000 yuan in ordinary invoices, totaling 280,000 yuan. They qualify for VAT exemption on the ordinary invoices, but must pay VAT on the special invoice [6]. - **Example D**: Company D's total sales reached 310,000 yuan in Q2 2025, with only ordinary invoices issued. They do not qualify for VAT exemption and must pay VAT [8]. - **Example E**: Company E issued 10,000 yuan in VAT special invoices and 300,000 yuan in ordinary invoices, totaling 310,000 yuan. They do not qualify for VAT exemption and must pay VAT on all sales [10].