1. Self-produced agricultural products sold by agricultural producers
Agriculture: planting, breeding, forestry, animal husbandry and aquaculture
2. Contraceptive medicines and paraphernalia
3. Ancient and old books: antique and old books purchased from the society
4. Imported instruments and equipment directly used for scientific research, scientific experiments and teaching
5. Imported materials and equipment freely assisted by foreign governments and international organizations
6. Goods directly imported by organizations of persons with disabilities for the exclusive use of persons with disabilities
7. Goods sold for their own use. Self-used articles are articles used by other individuals themselves
The Provisional Regulations of the People's Republic of China on Value-Added Tax (VAT) is a temporary regulation issued for the purpose of levying value-added tax (VAT). It is levied on "units and individuals who sell goods or provide processing, repair and fitting services and import goods within the territory of the People's Republic of China, and are taxpayers of value-added tax". The new VAT regulations and rules are effective from January 1, 2009, as amended.
On October 30, 2017, the 191st executive meeting of the State Council adopted the Decision on Amending the Provisional Regulations on Value-added Tax of the People's Republic of China*** and the State Council of the People's Republic of China.
The Decision was published by Decree No. 691 of the State Council of the People's Republic of China*** and the State Council of the People's Republic of China on November 19th.
The full text of the regulations and the amendments:
Article 1 Units and individuals selling goods or processing, repairing and fitting services (hereinafter referred to as services), selling services, intangible assets, real estate, and importing goods within the territory of the People's Republic of China (PRC) are taxpayers of value-added tax (VAT), and shall pay VAT in accordance with these regulations.
Article 2 Value-added Tax Rate:
(1) The tax rate for a taxpayer's sales of goods, labor services, leasing services of tangible movable assets, or imports of goods shall be 17%, unless otherwise provided for in items 2, 4 and 5 of this Article.
(ii) The tax rate for a taxpayer's sale of transportation, postal services, basic telecommunications, construction and real estate leasing services, sale of real estate, transfer of land use rights, and the sale or import of the following goods shall be 11%:
1. Agricultural products such as grains, edible vegetable oils, and edible salts;
2. Tap water, heating, cold air, hot water, coal gas, liquefied petroleum gas, Natural gas, dimethyl ether, biogas, coal products for residential use;
3. Books, newspapers, magazines, audio-visual products, electronic publications;
4. Feedstuffs, chemical fertilizers, pesticides, agricultural machinery, agricultural films;
5. Other goods prescribed by the State Council.
(3) The tax rate for sales of services and intangible assets by taxpayers shall be 6%, except as otherwise provided for in the first, second and fifth subparagraphs of this Article.
(d) Taxpayers exporting goods shall be subject to a tax rate of zero percent; however, unless otherwise provided by the State Council.
(v) The tax rate for cross-border sales of services and intangible assets within the scope of the State Council's regulations by domestic units and individuals is zero.
The adjustment of the tax rate shall be decided by the State Council.
Article 3 A taxpayer who concurrently engages in the operation of items with different tax rates shall separately account for the sales of items with different tax rates; if the sales are not separately accounted for, the tax rate shall be applied from the higher one.
Article 4 Except for the provisions of Article 11 of these Regulations, the taxable amount of a taxpayer's sales of goods, services, services, intangible assets, and immovable property (hereinafter collectively referred to as taxable sales) shall be the balance of the current output tax offset by the current input tax. The formula for calculating the taxable amount:
Taxable amount = current output tax - current input tax
When the current output tax is less than the current input tax, the shortfall can be carried forward to the next period for further deduction.
Article 5 The amount of value-added tax (VAT) collected by a taxpayer in accordance with the sales amount and the tax rate stipulated in Article 2 of these Regulations shall be the output tax amount. The formula for calculating the output tax amount:
Output tax amount=sales×tax rate
Article 6 The sales amount is the entire price and out-of-the-price charges collected by the taxpayer for the taxable sales behavior, but it does not include the output tax amount collected.
Sales are calculated in RMB. If a taxpayer settles sales in a currency other than RMB, it shall be converted into RMB.
Article 7 If a taxpayer's price for a taxable sale is obviously low and there is no justifiable reason for it, the sales amount shall be approved by the competent tax authorities.
Article 8 The amount of value-added tax (VAT) paid or borne by a taxpayer on the purchase of goods, services, services, intangible assets and real estate shall be the amount of input tax.
The following input tax amounts are allowed to be deducted from the output tax amount:
(1) The value-added tax amount stated in the special VAT invoice obtained from the seller.
(ii) The amount of VAT stated on the special VAT payment book for customs imports obtained from the customs.
(iii) The input tax amount calculated on the basis of the purchase price of agricultural products stated on the purchase invoice or sales invoice of agricultural products and a deduction rate of 11%, unless otherwise stipulated by the State Council, for the purchase of agricultural products, except for obtaining the special VAT invoice or the special payment book for VAT on customs imports. Input Tax Calculation Formula:
Input Tax = Purchase Price × Deduction Rate
(4) The amount of VAT stated on the tax-paid vouchers obtained from the tax authorities or the withholding agents for withholding and paying tax on behalf of the purchasing of labor, services, intangible assets, or immovable property within the territory from units or individuals outside the country.
Adjustment of the items and deduction rates for which credit is allowed shall be decided by the State Council.
Article 9 Where a taxpayer purchases goods, services, services, intangible assets or immovable property, and obtains VAT deduction vouchers that do not comply with the laws and administrative regulations or the relevant provisions of the competent tax authorities under the State Council, the input tax amount shall not be deducted from the output tax amount.
Article 10 The input tax of the following items shall not be deducted from the output tax:
(1) Purchased goods, services, services, intangible assets and immovable properties used for tax calculation projects by the simplified method of tax calculation, value-added tax exempted projects, collective welfare or personal consumption;
(2) Purchased goods of unnatural loss, as well as the related labor and transportation services;
(3) Purchased goods, and related labor and transportation services. p>
(iii) purchased goods (excluding fixed assets), labor and transportation services consumed in products in process and finished products of abnormal losses;
(iv) other items prescribed by the State Council.
Article 11 Small-scale taxpayers who engage in taxable sales behavior shall implement the simple method of calculating the taxable amount according to the sales amount and the levy rate, and shall not be allowed to offset the input tax. The formula for calculating the taxable amount:
Taxable amount=sales×levy rate
The standards for small-scale taxpayers shall be prescribed by the competent departments of finance and taxation under the State Council.
Article 12 The value-added tax (VAT) collection rate for small-scale taxpayers shall be 3%, unless otherwise provided by the State Council.
Article 13 Taxpayers other than small-scale taxpayers shall register with the competent tax authorities. Specific registration methods shall be formulated by the competent tax authorities under the State Council.
Small-scale taxpayers with sound accounting and able to provide accurate tax information can register with the competent tax authorities, not as a small-scale taxpayers, in accordance with the relevant provisions of these regulations to calculate the amount of tax payable.
Article XIV Taxpayers importing goods, in accordance with the composition of the taxable price and the tax rate specified in Article 2 of these Regulations to calculate the taxable amount. The formula for calculating the constituent taxable price and taxable amount:
Constituent taxable price=duty-paid price+duty+consumption tax
Taxable amount=constituent taxable price×tax rate
Article 15 The following items are exempted from the value-added tax (VAT):
(1) Self-produced agricultural products sold by agricultural producers;
(2) Contraceptive medicines and appliances;
(iii) antique books;
(iv) imported instruments and equipment directly used for scientific research, scientific experiments and teaching;
(v) imported materials and equipment freely assisted by foreign governments and international organizations;
(vi) items directly imported by organizations of the handicapped for the exclusive use of the handicapped;
(vii) sales of own-used (viii) The sale of articles that have been used by the person himself/herself.
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 may prescribe tax exemptions or reductions.
Article 16 Where a taxpayer engages in both tax-exempted and tax-reduced items, he shall account for the sales of the tax-exempted and tax-reduced items separately; if he fails to account for the sales separately, he shall not be exempted from or reduce the tax.
Article 17 If the sales of a taxpayer do not reach the threshold of value-added tax prescribed by the competent departments of finance and taxation under the State Council, the taxpayer shall be exempted from value-added tax; if the threshold is reached, the taxpayer shall pay the value-added tax in full according to the provisions of these Regulations.
Article 18 If a unit or individual outside the People's Republic of China*** and the State of China sells labor services within the territory of the People's Republic of China and does not have a business organization within the territory of the People's Republic of China, the agent within the territory of the People's Republic of China shall be the withholding agent; if there is no agent within the territory of the People's Republic of China, the purchaser shall be the withholding agent.
Article 19: The time of occurrence of value-added tax obligation:
(1) When a taxable sales act occurs, it is the day when the sales payment is received or the receipt of the sales receipt is obtained; if the invoice is issued first, it is the day when the invoice is issued.
(b) For imported goods, the day of customs clearance.
The time of occurrence of VAT withholding obligation is the day when the taxpayer's VAT obligation occurs.
Article 20 The value-added tax (VAT) shall be collected by the tax authorities and the VAT on imported goods shall be collected by the Customs on behalf of the taxpayer.
The value-added tax on articles brought in by individuals or mailed in for their own use shall be levied together with the customs duty. The specific measures shall be formulated by the Customs Tariff Commission of the State Council in conjunction with the relevant departments.
Article 21 A taxpayer who engages in taxable sales behavior shall issue a special VAT invoice to the purchaser who asks for the special VAT invoice, and shall state the sales amount and the output tax amount on the special VAT invoice respectively.
Value-added tax invoices shall not be issued under any of the following circumstances:
(1) where the purchaser of the taxable sales is an individual consumer;
(2) where the taxable sales are subject to tax exemption.
Article 22 Place of VAT Payment:
(1) A fixed business shall declare its tax payment to the tax authority in charge of the place where its organization is located. If the head office and the branches are not in the same county (city), they shall declare taxes to the competent tax authorities of their respective locations; with the approval of the competent department of finance and taxation under the State Council or the finance and taxation authorities authorized by the State Council, taxes may be declared by the head office in aggregate to the competent tax authorities of the location of the head office.
(2) fixed businesses to sell goods or services in foreign counties (cities), shall report to the competent tax authorities of the location of their institutions to go out of the business matters, and to the competent tax authorities of the location of their institutions to declare taxes; not reported, shall be to the competent tax authorities of the place where the sales or services occur; not to the competent tax authorities of the place where the sales or services occur, the competent tax authorities of the location of their institutions to make up for the tax payment. competent tax authorities of the place where its organization is located to collect the additional tax.
(3) The sale of goods or services by a non-fixed business shall be declared to the competent tax authorities of the place of sale or the place of occurrence of the services; if it is not declared to the competent tax authorities of the place of sale or the place of occurrence of the services, the tax shall be levied by the competent tax authorities of the place where the organization is located or the place where the organization resides.
(d) imported goods, should be declared to the customs declaration of tax.
The withholding agent shall declare and pay the tax withheld by him to the competent tax authority at the place of his organization or residence.
Article 23 The tax period for value-added tax shall be 1 day, 3 days, 5 days, 10 days, 15 days, 1 month or 1 quarter. The specific tax period of a taxpayer shall be approved by the competent tax authorities according to the size of the tax payable by the taxpayer respectively; if the tax cannot be paid in accordance with a fixed period, the tax may be paid on a per-period basis.
Taxpayers with 1 month or 1 quarter as a tax period, from the date of expiration of 15 days to declare tax; 1, 3, 5, 10 or 15 days as a tax period, from the date of expiration of 5 days to pay taxes in advance, within 15 days from the first day of the following month to declare tax and settle the tax payable for the previous month.
The period of time for the withholding agent to release the tax shall be implemented in accordance with the provisions of the preceding two paragraphs.
Article 24 A taxpayer who imports goods shall pay the tax within 15 days from the date when the Customs fills out the Customs Import Value-added Tax Special Payment Letter.
Article 25 Taxpayers exporting goods subject to the provisions on tax refund (exemption) shall go through export procedures with the Customs, and with the relevant certificates such as export declaration, declare to the competent tax authorities for the tax refund (exemption) for the exported goods on a monthly basis within the specified period of the export tax refund (exemption) declaration; and domestic units and individuals applying to the provisions on tax refund (exemption) for the cross-border sale of services and intangible assets shall declare to the competent tax authorities for the tax refund (exemption) on a periodical basis. Domestic units and individuals selling services and intangible assets across the border to which the provisions on tax refund (exemption) apply shall declare to the competent tax authorities on a regular basis for tax refund (exemption). Specific measures shall be formulated by the competent departments of finance and taxation under the State Council.
If the return of export goods or customs clearance occurs after the tax refund is processed, the taxpayer shall make up for the refunded tax in accordance with the law.
Article 26 The collection and management of value-added tax shall be carried out in accordance with the Law of the People's Republic of China on the Administration of Taxation and Collection and the relevant provisions of these Regulations.
Article 27 If the State Council or the competent departments of finance and taxation under the State Council agree with the State Council to provide otherwise in respect of matters relating to the payment of value-added tax by taxpayers, they shall do so in accordance with the provisions thereof.
Article 28 These Regulations shall come into force on January 1, 2009.
Amendments:
Article 1 shall be amended as follows: "Units and individuals selling goods or processing, repairing and repairing services (hereinafter referred to as services), selling services, intangible assets, immovable property, and importing goods within the territory of the People's Republic of China*** and the State of China are taxpayers of value-added tax (VAT), and shall pay VAT in accordance with the present Regulations. "
II. The first paragraph of Article 2 shall be amended as follows: "The rate of value-added tax (VAT):
"(1) A taxpayer who sells goods, labor services, leasing services of tangible movable assets, or imports goods shall be subject to a tax rate of 17%, except as otherwise provided for in Items 2, 4, and 5 of this Article.
"(2) The tax rate for taxpayers selling transportation, postal services, basic telecommunications, construction, real estate leasing services, selling real estate, transferring the right to use land, and selling or importing the following goods shall be 11%:
"
"
"
"1. Agricultural products such as grains, edible vegetable oils, and edible salt;
"2. tap water, heating, cooling, hot water, coal gas, liquefied petroleum gas, natural gas, dimethyl ether, biogas, coal products for residential use;
"3. books, newspapers, magazines, audio-visual products, and electronic publications;
"4. feeds, fertilizers, pesticides, Agricultural machinery, agricultural film;
"5. Other goods prescribed by the State Council.
"(3) Taxpayers selling services and intangible assets shall be subject to a tax rate of 6%, except as otherwise provided in the first, second and fifth subparagraphs of this Article.
"(4) Taxpayers exporting goods shall be subject to a tax rate of zero percent; however, except as otherwise provided by the State Council.
"(v) The tax rate for cross-border sales of services and intangible assets within the scope of the State Council's regulations by domestic units and individuals shall be zero."
Third, the "sale of goods or provision of taxable services (hereinafter referred to as the sale of goods or taxable services)" in the first paragraph of Article 4 shall be amended as "the sale of goods, services, services, intangible assets, real estate (hereinafter collectively referred to as the taxable sales behavior) "; Article 5, Article 6, paragraph 1, Article 7, Article 11, paragraph 1, Article 19, paragraph 1, subparagraph 1 of the "sale of goods or taxable services" amended to "the occurrence of taxable sales behavior".
Four, the first paragraph of Article 8 of the "purchase of goods or acceptance of taxable services (hereinafter referred to as the purchase of goods or taxable services)", in Article 9 of the "purchase of goods or taxable services" amended to ". Purchase of goods, labor services, services, intangible assets, real estate".
Input tax calculated in accordance with the purchase price of agricultural products and the 13% deduction rate stated in the purchase invoice or sales invoice of agricultural products" in the third item of the second paragraph of Article 8 is amended to "the purchase price of agricultural products and the 11% deduction rate stated in the purchase invoice or sales invoice of agricultural products". The input tax amount calculated according to the purchase price of agricultural products stated in the purchase invoice or sales invoice of agricultural products and a deduction rate of 11%, unless otherwise provided by the State Council".
Deleting the fourth item of the second paragraph of Article 8, and adding one item as the fourth item: "(4) The amount of value-added tax stated on the tax payment certificate obtained from the tax authorities or withholding agents for withholding and payment of tax on behalf of labor, services, intangible assets, or real estate within the country purchased from overseas units or individuals".
V. Article 10 shall be amended as follows: "The input tax of the following items shall not be deducted from the output tax:
"(1) Purchased goods, services, services, intangible assets and immovable properties used for taxable items under the simplified method of tax calculation, VAT-exempted items, collective benefits or personal consumption;
"(2) Purchased goods, as well as related labor and transportation services that are not normal losses;
"(3) Purchased goods (excluding fixed assets), labor and transportation services consumed in products in progress and finished products that are not normal losses;
"(4)"(4) ) other items prescribed by the State Council."
VI. Article 12 shall be amended as follows: "The value-added tax (VAT) collection rate for small-scale taxpayers shall be 3%, except as otherwise provided by the State Council."
Seven: the phrase "selling goods or taxable services" in Article 21 (1) and (2) (2) is amended to read "the occurrence of taxable sales behavior"; the first item of the second paragraph is amended to read: "(1) The purchaser of the taxable sales behavior is an individual consumer. The first item of the second paragraph shall be amended to read: "(1) Where the purchaser of the taxable sales act is an individual consumer"; and the third item of the second paragraph shall be deleted.
Eighth, Article 22, paragraph 1, subparagraph 2, is amended to read: "(2) fixed businesses to sell goods or services in foreign counties (municipalities), shall report to the competent tax authorities of the place where their institutions are located to go out of the business matters, and to the competent tax authorities of the place where their institutions are located to declare taxes; not reported, shall be to the place of sale or the place where the labor occurs to the competent tax authorities If it fails to do so, it shall declare taxes to the competent tax authority of the place where the sales or labor services take place; if it fails to declare taxes to the competent tax authority of the place where the sales or labor services take place, the competent tax authority of the place where the organization is located shall collect the additional taxes"; and the phrase "the sale of goods or taxable labor services" in the third item of the first paragraph is amended to "the sale of goods or labor services". labor services".
Nine, in the first paragraph of Article 25, "the specific measures shall be formulated by the competent departments of finance and taxation under the State Council" before the addition of "domestic units and individuals applying for tax refund (exemption) for cross-border sales of services and intangible assets shall declare to the competent tax authorities for tax refund (exemption) on a regular basis". tax".
Ten, one article is added as Article 27: "If the State Council or the competent departments of finance and taxation of the State Council agree with the State Council that there are other regulations on matters relating to the payment of value-added tax by taxpayers, they shall comply with the regulations thereof."
In addition, textual amendments have been made to individual articles.
This decision shall come into force on the date of its publication.