Imported equipment generally pay import value-added tax and import customs duty two kinds.
1.Import VAT. VAT is a kind of turnover tax levied on the basis of the value-added amount of goods and taxable labor services generated in the process of turnover. The taxable objects of VAT include units and individuals who sell goods or provide processing, repair and fitting services and import goods.
2.Import Tariff. Customs department of import and export goods through a country's customs territory or the national border when the tax levied.
3. Specific commodities are subject to import consumption tax. In order to regulate the product structure and guide the direction of consumption. China for specific consumer goods to implement the collection of consumption tax, that is, on the basis of the general collection of value-added tax on goods, and again levied consumption tax.
What are the formulas for calculating taxes on imported goods?
Import tariff = CIF price x import tariff rate
Export tariff = FOB FOB price/(1+export tariff rate) x export tariff rate
VAT = constituent taxable price x tariff rate = (Duty Paid Price + Customs Duty + Consumption Duty) x rate
There are two types of consumption tax, which are practiced on an ad valorem basis and a compounded basis:
Ad valorem taxation, such as cigarettes
Imported consumption tax = (duty-paid price + customs duty) ÷ (1 - proportional rate of consumption tax) × proportional rate of consumption tax
Compound taxation, such as cigarettes
Imported consumption tax = (duty-paid price + customs duty + quantity imported × fixed rate of consumption tax) ÷ (1 - proportional rate of consumption tax) × proportional rate of consumption tax + Quantity Imported x Flat Rate of Consumption Tax
Import Tax = Import Customs Duty + VAT + Consumption Tax = (Import Customs Duty Rate + Consumption Tax Rate + VAT Rate + Import Customs Duty Rate x Value Added Tax Rate)/(1 - Consumption Tax Rate) x CIF = Constant x CIF