After the VAT rate is simplified from July 1, taxpayers will be levied a VAT of 11% on sales of traditional Chinese medicine pieces, and 17% of VAT on sales of proprietary Chinese medicines.
The State Council executive meeting decided that starting from July 1 this year, the value-added tax rate will be reduced from four levels to three levels: 17, 11 and 6, and the 13 tax rate will be cancelled; value-added tax rates for agricultural products, natural gas, etc. The tax rate was reduced from 13 to 11.
Agricultural products refer to various plant and animal primary products produced by planting, breeding, forestry, animal husbandry, and aquaculture. The specific taxation scope will continue to be implemented in accordance with the "Notice of the Ministry of Finance and the State Administration of Taxation on Issuing the "Notes on the Taxation Scope of Agricultural Products" (Caishuizi [1995] No. 52) and the current relevant regulations.
Medicinal plants in agricultural products refer to the roots, stems, bark, leaves, flowers, fruits, etc. of various plants that can be used as raw materials for traditional Chinese medicine. Chinese herbal medicine pieces such as slices, shreds, blocks and segments processed using the above medicinal plants are also subject to taxation. Chinese patent medicines do not fall within the scope of taxation on this product. Therefore, the value-added tax on traditional Chinese medicine pieces is 11%.
Extended information:
(1) When a taxpayer sells or imports goods, except for the provisions of the second and third items below, the tax rate is 13.
(2) Taxpayers selling or importing the following goods are subject to a tax rate of 9: grain, edible vegetable oil, tap water, heating, air conditioning, hot water, coal gas, liquefied petroleum gas, natural gas, biogas, and coal products for residential use , books, newspapers, magazines, feed, fertilizers, pesticides, agricultural machinery, agricultural films, agricultural products, and other goods specified by the State Council.
(3) The tax rate for taxpayers exporting goods is zero; however, unless otherwise specified by the State Council.
(4) The tax rate for taxpayers providing processing, repair, and repair services is 13. Taxpayers concurrently operate goods or taxable services with different tax rates.
Baidu Encyclopedia-VAT rate