增值税若干具体问题的规定

Provisions for Some Specific Questions on Value-Added Tax


1.Scope of Taxation

(1)Value-Added tax shall be levied on forward tran
-sactions in goods (including commodity futures an
-d precious metal futures).

(2)Value-Added Tax shall be levied on the business
of selling gold and silver by banks.

(3)Value-Added Tax shall bot be levied on financin
g and leasing businesses, whether or bot ownership
of the leased goods is tranferred to the lessee.

(4)For precast concrete components, other structur
al components or building materials produced by a
factory or workshop affiliated to an infrastructur
al construction unit or an enterprise engaged in c
onstruction and used on construction projects of t
hat unit jor enterprise, Value-Added Tax shall be
levied at the time when the products are transferr
ed for use. But for precast components produced at
the construction sites and used directly on constr
uction projects of that unit or enterprise, no Val
-ue-Added Tax shall be levied.

(5)Value-Added Tax shall be levied on sales of dea
d articles in pawn for pawn business and sales of
consignment goods on behalf of consignors for cons
ignmemt business.

(6)Value-Added Tax shall not be levied on sales of
original copy of cinematographic films, video tap
es and audio tapes arising from the transfer of ow
nership of copy-right as well as sales of computer
software arising from the transfer of the ownersh
ip of copy-right as well as sales of computer soft
ware arising from the transfer of the ownership of
patented techbology or non-patented technology.

(7)Value-Added Tax shall not be levied on the supp
ly or extraction of unprocessed natural water (suc
h as the supply of water from a reservoir for agri
cultural irrigation and the self-extraction of und
erground water by a factory for use in production)
.
(8)Value-Added Tax shall evied on sales of philate
ly stamps and first day covers by postal departmen
ts.

(9)value-Added Tax shall be levied on the business
of sewing.

2.Basis of Tax Computation

(1) Deposits collected by a taxpayer on packaging
materials leased or lent out in the sales of goods
and that are recorded and accounted for separatel
y are not included in the sales amount for tax lev
y. But for deposits that are not to be returned as
the packaging materials are not collected when du
e, Value-Added Tax shall be levied at the tax rate
applicable to the packaged goods .

(2)For taxpayers adopting the methos of selling go
ods at a discount, if the sales amount and the dis
-count amount are separately specified on the same
invoice, Value-Added Tax can be levied on the sale
s amount after deducting the discount. If the disc
ount amount is specified on a separate invoice, th
e discount amount shall not be deducted from the s
ales amount, no matter how the financial treatmint
is handled.

(3)For taxpayers adopting the method of selling go
ods by exchanging new products for old ones, the s
ales amount shall be determined based on the selli
ng price of the new products in the same period.

For taxpayers adopting the method of selling goods
for repayment of principals, the expenditures on
principal repayment shall not be deducted from the
sales amount.

(4)In case the sales amount of a taxpayer is deter
mined on the basis of the composite assessable val
ue according to the regulations as its selling pri
ces are obviously low or no selling prices are ava
ilable, the cost plus margin rate in the composite
assessable value formula shall be 10%. However, fo
r goods on which a Consumption Tax shall be levied
at a rate on price value method, the cost-plus ma
rgin rate in the composite assessable value formua
la shall be the cost plus margin rate prescribed i
n the < Provisions for Some Specific Questions on
Consumption Tax>.

3.Thresholds for Small-scale Taxpayers

(1)"Sales amount" mentioned in Article 24 of the D
-etailed Rules concerning the threshold for small
scale taxpayers refers to the sales amount for the
small-scale taxpayers predcribed in Article 25 of
the said Detailed Rules.

(2)"Taxpayers engaged principallly in the producti
on of goods or the provision of taxable services a
nd also in wholesaling or retailing of goods" mint
ioned in Article 24 of the Detailed Rules refer to
those type of taxpayers whose sales amount, while
the sales amount of wholesaling and retailing bus
inesses makes up less than 50%.

4.Businesses wits a fixed establishment selling go
ods in a different county (or city) shall apply fo
r the issuance of an outbound business activities
tax administration certificate from the local tax
authorities where the establishment is located and
shall report and pay tax with the local tax autho
rities where the establishmint is located. Busines
ses selling goods and taxable services in a differ
ent county (or city ) without the outbound busines
s activities tax administration certificate issued
by the local tax authorities where the establishmi
nt is located, the local tax authorities where the
sales activites occur shall impose a tax at the u
niform tax rate of 6% , After the sale amount is b
-rought back to the place where the establishment
is located, the sale amount arose in the selling p
laces shall still have to be riported and subject
to tax in accordance with the provisions. The tax
paid in the selling place shall not be deducted fr
om the amount of tax payable of the period.