What cross-border taxable acts occurring by taxpayers in the territory are exempted from VAT According to the Announcement of the State Administration of Taxation on the Issuance of Administrative Measures for the Exemption of Cross-Border Taxable Acts from VAT (for Trial Implementation) on the Modification of Business Tax to Value-added Tax (Announcement of the State Administration of Taxation No.29 of 2016), the following are exempted from VAT in Article 2: (1) Construction services for engineering projects outside the country. Construction services provided by general contractors and subcontractors for engineering projects whose construction sites are outside the country are construction services of engineering projects outside the country. (ii) Engineering supervision services for projects located outside the territory of the project. (iii) Engineering survey and exploration services for projects and mineral resources outside the country. (iv) Conference and exhibition services for conferences and exhibitions held outside China. The organization and arrangement services provided for clients to attend conferences and exhibitions held outside the country belong to conference and exhibition services where the conference and exhibition venues are located outside the country. (v) Warehousing services where the storage location is outside the country. (vi) Leasing services for tangible movable assets whose subject matter is used outside the country. (vii) Broadcasting services for broadcasting film and television programs (works) provided outside the country. Broadcasting services for broadcasting film and television programs (works) provided outside China refer to the broadcasting of broadcasting film and television programs (works) in cinemas, theaters, video halls and other places outside China. The broadcasting of radio and television programs (works) outside China through radio, television, satellite communications, the Internet, cable television and other wireless or wired devices within China is not considered broadcasting services provided outside China. (viii) Cultural and sports services, education and medical services, and tourism services provided outside China. Cultural and sports services and educational and medical services provided outside China refer to cultural and sports services and educational and medical services provided by taxpayers on site outside China. Organization and arrangement services provided for participation in scientific and technological activities, cultural activities, cultural performances, cultural competitions, sports competitions, sports performances and sports activities held outside the country are cultural and sports services provided outside the country. Cultural and sports services or educational and medical services provided to entities or individuals outside the country through media such as radio, television, satellite communications, the Internet and cable television within the country are not cultural and sports services or educational and medical services provided outside the country. (ix) Postal services, collection and delivery services and insurance services provided for exported goods. 1. Postal services provided for the export of goods means: (1) sending letters, parcels and other mail out of the country. (2) Issuing stamps abroad. (3) Exporting postal products such as postal albums. 2. Collection and dispatch services provided for exported goods refers to the collection, sorting and delivery services provided for outbound letters and parcels. Taxpayers who provide collection and dispatch services for exported goods, the tax-exempt sales amount is the full price and out-of-the-price fees charged to the sender. 3. Insurance services provided for export goods, including export cargo insurance and export credit insurance. (x) Telecommunication services sold to overseas units for consumption entirely outside the country. Telecommunication services provided by taxpayers to overseas units or individuals, where the expenses are settled through overseas telecommunication units, the recipient of the services is the overseas telecommunication unit, which are telecommunication services consumed entirely outside the country. (xi) Intellectual property services sold to overseas units and consumed entirely outside the country. Intellectual property services where the actual recipient of the service is a domestic unit or individual are not intellectual property services consumed entirely outside the country. (xii) logistics support services sold to foreign units for consumption entirely outside the country (except for warehousing services and collection and delivery services). When an overseas entity engages in international transportation and Hong Kong, Macao and Taiwan transportation business stops at airports, terminals, stations, airspace, inland waterways and sea areas in China, the aviation ground services, port terminal services, freight and passenger terminal services, salvage and rescue services, and loading and unloading and handling services provided by the taxpayer to the overseas entity belong to logistics auxiliary services consumed entirely outside the country. (xiii) Forensic consulting services sold to overseas entities for consumption entirely outside the country. The following circumstances are not fully in the offshore consumption of forensic consulting services: 1. The actual recipient of the service for the domestic units or individuals. 2. Certification services, forensic services and consulting services for goods or real estate within the territory. (xiv) Professional and technical services sold to units outside the country that are consumed entirely outside the country. The following cases are not considered professional and technical services consumed entirely outside the country: 1. The actual recipient of the service is a unit or individual within the country. 2. Meteorological services, seismic services, oceanographic services, environmental and ecological monitoring services for weather conditions, seismic conditions, oceanographic services, environmental and ecological conditions in the territory. 3. Surveying and mapping services for topography, geology, hydrology, mineral deposits, etc. within the territory. 4. urban planning services for cities, towns and villages within the territory.
Legal Objective:Provisional Regulations of the People's Republic of China on Value-Added Tax (VAT)
Article 15
The following items are exempted from value-added tax (VAT):
(1) Agricultural products of self-production sold by agricultural producers;
(2) Contraceptive medicines and paraphernalia;
(3) Ancient and antiquarian books;
( (iv) Imported instruments and equipment directly used for scientific research, scientific experiments and teaching;
(v) Imported goods and equipment freely assisted by foreign governments and international organizations;
(vi) Goods directly imported by organizations of disabled persons for the exclusive use of disabled persons;
(vii) Goods sold for their own use.
Except for the provisions of the preceding paragraph, the tax exemptions and reductions of value-added tax shall be prescribed by the State Council. No region or department shall prescribe tax exemptions or reductions.