Value added tax (VAT)
From the principle of tax calculation, VAT is a kind of turnover tax levied on the added value of commodities or commodities in several stages of commodity production, circulation and labor service. It is an out-of-the-money tax, that is, it is borne by the consumers, and the tax is levied only when there is value-added but not when there is no value-added. However, in practice, it is very difficult to accurately calculate the added value of commodities or the added value in the process of production and circulation. Therefore, our country also adopts the international commonly used tax deduction method, that is, according to the sales of goods or services, according to the specified tax rate to calculate the output tax, and then deducted to obtain the goods or services when the payment of value-added tax, that is, input tax, the difference is the value-added part of the tax payable, the calculation method reflects the value-added factor of the original present tax.
The formula is: tax payable = output tax - input tax
VAT formula: tax-inclusive sales/(1+tax rate)=tax-exclusive sales
tax-exclusive sales×tax rate=tax payable
It is mentioned above that VAT is an "out-of-the-money" tax, what is it? What is "out-of-the-money" tax? It is a tax that is levied outside the price, which is borne by the consumer. For example:
Your company purchased 100 pieces of goods from company a, amounting to 10,000 yuan, but your company actually has to pay the other party not 10,000 yuan, but 10,000 + 10,000 * 17% (assuming that the value-added tax rate is 17%) = 11,700 yuan.
Why is the value of goods purchased only 10,000 yuan, but also to pay a 1700 yuan? Because at this point, your company as a consumer will have to bear another 1700 yuan of value-added tax, which is the value-added tax out-of-the-price levy. This 1700 yuan of value-added tax on your company is the "input tax". a company collected more than the 1700 yuan of value-added tax is not owned by a company, a company to 1700 yuan of value-added tax to the state. So company a just collects and pays on behalf of the company, and does not bear the tax.
Again, for example:
Your company processed 100 pieces of purchased goods into 80 pieces of A products and sold them to b0 company, making sales of 15,000 yuan, and the payment for the A products that your company has to collect from the b company is not only 15,000 yuan but 15,000+15,000*17%=17,550 yuan, because the b company should pay another 2,550 yuan of value-added tax (VAT) to your company as a consumer at this time. Company b as a consumer should also pay you another 2550 yuan of value-added tax, which is your company's "output tax". Your company collected this 2550 yuan VAT amount also does not belong to your company, your company also want to submit to the state, so 2550 yuan of VAT is not your company's burden, your company is also just on behalf of the collection of payment.
If your company is a general taxpayer, the input tax can be deducted from the output tax.
Your company pays 1,700 yuan of input VAT on the purchase of goods, and receives 2,550 yuan of output VAT on the sale of Product A. Since your company is a general taxpayer, you can deduct the output VAT from the input VAT. Since your company is a general taxpayer, input VAT can be deducted in output VAT, so the VAT payment that your company hands over to the state is not the 2550 yuan that you charge to company b, but rather: 2550-1700=850 yuan, so this 850 yuan is also the amount that company b pays to your company when it purchases product A from your company, and hands it over to the state through your company. b buys your company's product A and then sells it to company c, which then sells it to company c, and company c then sells it to company c, which then sells it to company c, which then sells it to company c. sells it to company c, who then sells it to company d ...... These processes are all subject to VAT, until they are sold to the final consumer, which passes on the VAT to the final consumer, so VAT is also a turnover tax.
If you are an accountant, you can also see from the accounting entries:
When your company purchased 100 pieces of goods from company a, the entries:
Borrow: Raw materials 10,000
Taxes payable - VAT payable (input tax) 1700
Credit: Accounts Payable - Company A 11700
The entry does not treat the 1700 yuan collected as an expense of the company, but as "tax payable", because your company is a general taxpayer, and the input tax can be deducted.
When your company sells 80 pieces of Product A to Company b, the entry:
Borrow: Accounts Receivable - Company b 17550
Loan: Revenue from Main Business 15000
Loan: Taxes Payable - VAT Payable (Sales Item)
The VAT (output tax) due is 2550
The entry does not include the 2550 VAT collected from company b as business income, but rather as "taxes due" because it is not owned by your company, but rather is a tax due to the state.
Output tax - input tax = 2550 - 1700 = 850 yuan is the tax to the state.
Value-added tax is a tax on the value-added amount realized by units and individuals who sell goods or provide processing, repair and fitting services and import goods.On December 13, 1993, the State Council issued the Provisional Regulations on Value-added Tax of the People's Republic of China, and on December 25, the Ministry of Finance issued the Implementing Rules for the Provisional Regulations on Value-added Tax of the People's Republic of China, which came into effect on January 1, 1994.
Value-added tax is a tax on the value added amount of goods sold, or processing, repair and fitting services and imported goods. On January 1, 1994, they came into force.
The advantages of the implementation of value-added tax: firstly, it is conducive to the implementation of the principle of fair tax burden; secondly, it is conducive to the rationalization of the structure of production and operation; thirdly, it is conducive to the expansion of international trade transactions; and fourthly, it is conducive to the State's general, timely and stable acquisition of fiscal revenues.
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I. Taxpayers of Value-added Tax (VAT)
The sale of goods or the provision of units and individuals who sell goods or provide processing, repair and fitting services as well as import goods within the territory of the People's Republic of China shall be the taxpayers of value-added tax (VAT).
The scope of VAT collection
The scope of VAT collection includes: 1) goods; 2) taxable labor services; and 3) imported goods.
Three, the rate of VAT
The rate of VAT is divided into three levels: the basic rate of 17%, the lower rate of 13% and zero rate.
Fourth, the basis of VAT
The basis of VAT for taxpayers to sell goods or provide taxable services is their sales, and the basis of VAT for imported goods is the stipulated constituent taxable price.
V. Calculation of VAT Taxable Amount
1. The taxable amount of general taxpayers = current output tax - current input tax.
2. Taxable amount of small-scale taxpayers = sales with sharp ÷ (1 + levy rate) × levy rate
3. Taxable amount of imported goods = (tariff-paid price + tariff ten consumption tax) × tax rate
6. VAT Tax Declaration and Place of Payment of Tax
Time for declaration of VAT payment and tax payment period approved by the competent state tax authorities are linked to the tax period approved by the competent state tax authorities. Taxpayers who pay tax for one month shall declare tax within 10 days from the date of expiration of the period; taxpayers who pay tax for one day, three days, five days, ten days or fifteen days shall pay tax in advance within five days from the date of expiration of the period, and shall declare and settle the tax payable for the previous month from the 1st to the 10th day of the following month.
The fixed VAT businessmen shall declare their taxes to the tax authorities in the place where they are located, the non-fixed VAT businessmen shall declare their taxes to the tax authorities in the place where they are sold, and the imported goods shall be declared as taxable by the importer or his agent to the Customs in the place where the goods are declared.
VII. Preferential Policies on Value-added Tax (VAT)
1. Primary agricultural products of self-production sold by agricultural producers;
2. Contraceptive drugs and appliances;
3. Antique books;
4. Imported instruments and equipments directly used in scientific researches, scientific experiments and teaching;
5. Imported materials and equipments of foreign governments and international organizations which are free of charge;
5. Imported materials and equipments of foreign governments and international organizations which are free of charge;
6. Imported materials and equipment of foreign governments and international organizations for free assistance;
6. Imported equipment required for processing of raw materials, assembly of parts and compensation trade;
7. Goods directly imported by disabled people's organizations for the exclusive use of disabled people;
8. Goods sold for their own use (excluding yachts, motorcycles and automobiles subject to consumption tax).
Scope of VAT
The scope of VAT includes the sale and import of goods, and the provision of processing and repair and fitting services. Goods here refer to tangible movable assets, including electricity, heat, gas, etc., excluding real estate. Processing refers to the commissioned processing of goods, that is, the commissioning party to provide raw materials and essential materials, the commissioned party in accordance with the requirements of the commissioning party to manufacture the goods and collect processing fees; repair and fitting refers to the commissioned damage and loss of functionality of the goods to repair, so as to restore the original shape and function of the business.
In addition the following acts are treated as sales of goods and are subject to VAT.
Selling goods to others
Selling goods on behalf of others
Transferring goods from one place to another (except in the same county or city)
Using self-produced or commissioned goods for non-taxable projects
Using self-produced, commissioned, or purchased goods as an investment in other entities
Distributing self-produced, commissioned or purchased goods to shareholders or investors
Using self-produced or commissioned-processed goods for employees' welfare or personal consumption
Giving away self-produced, commissioned-processed or purchased goods to others without compensation
In China, the scope of levy of value-added tax (VAT) and business tax (BT) do not overlap with each other, and those who are liable to VAT no longer levy BT, and those who are liable to BT no longer levy VAT. In China, there is no overlap between the scope of VAT and the scope of business tax. However, in actual economic activities, there are taxpayers who operate both taxes or mix the taxable behaviors of these two taxes.
For a sales behavior that involves both VAT taxable goods and business tax taxable services, it is regarded as a mixed sales behavior, such as: the taxpayer sells goods and is responsible for the transportation, the sale of goods for the scope of the VAT levy, the transportation for the scope of the business tax levy. The tax treatment is that for taxpayers whose main business is the production, wholesale or retail of goods (meaning that the annual turnover of the taxpayer's sales of goods accounts for more than 50% of its total turnover), all of them are regarded as the sales of goods for the collection of value-added tax and no business tax is levied; and for the other taxpayers who are not the main producers, wholesalers or retailers of goods, all of them are regarded as the business tax taxable labor services, and no more value-added tax is levied.
Unlike the mixed sales behavior, the concurrent operation behavior refers to the taxpayer engaging in the VAT taxable behavior at the same time, also engaging in the business tax taxable behavior, and there is no direct connection and subordinate relationship between the two. The tax treatment for this is to require the taxpayer to account for the two separately and pay tax separately, and if the accounting cannot be done separately or is inaccurate, then all of the VAT will be levied.
Other special VAT taxable areas include: physical delivery of goods futures, sale of dead pawns in the pawnbroking industry, production and sale of philatelic commodities by non-postal authorities (postal authorities pay business tax on the production and sale of philatelic commodities), and so on.
Taxpayers
All units and individuals engaged in VAT taxable behavior and withholding agents who are not engaged in VAT taxable behavior but have the obligation to withhold VAT are VAT taxpayers. Before 1994, foreign-funded enterprises paid the Unified Industrial and Commercial Tax and were not the taxpayers of VAT, but after the State Administration of Taxation issued Guo Shui Fa [1993] No. 138 "Circular on the Implementation of VAT on Foreign-Related Taxes" on Nov. 6, 1993, foreign-funded enterprises became the taxpayers of VAT on Jan. 1, 1994, too.
Because VAT implements the system of tax deduction by VAT special invoice, the accounting level of taxpayers is required to be higher, and they are required to be able to accurately account for output tax, input tax and taxable amount. However, the actual situation is that there are many taxpayers can not meet this requirement, so the Provisional Regulations on Value-added Tax of the People's Republic of China will be divided into general taxpayers and small-sized taxpayers according to the size of their business and the soundness of their accounting. The specific classification criteria are:
Production taxpayers with annual VAT taxable sales of 1 million yuan;
Non-production taxpayers such as wholesalers and retailers with annual VAT taxable sales of 1.8 million yuan.
Small-scale taxpayers
Taxpayers whose annual sales do not reach the aforementioned standards are small-scale taxpayers, in addition to individuals, non-enterprise units and enterprises that do not regularly engage in VAT taxable behavior are also recognized as small-scale taxpayers. Small-scale taxpayers can become general taxpayers after their applications are approved after meeting the criteria.
The simplified method of VAT collection is realized for small-scale taxpayers, and their input tax is not allowed to be deducted.
General taxpayers
The general taxpayers can become general taxpayers if their annual VAT taxable sales meet the standard, and the standard can be relaxed to 300,000 yuan for production taxpayers with sound accounting, but non-production business enterprises have to meet the standard to become general taxpayers, regardless of whether their accounting is sound or not. In addition, since the State has been mandatorily promoting tax-controlled fuel dispensers since 1999 and prohibiting the production and sale of non-tax-controlled fuel dispensers, the State Administration of Taxation issued Guo Shui Han [2001] No. 882, "Notice on the Taxation of All Gasoline Stations in accordance with the General VAT Taxpayers" on December 3, 2001, which stipulates that all gas stations engaged in the sale of refined products are recognized as general taxpayers starting from January 1, 2002 regardless of their sizes, and that they are not taxable. taxpayers, regardless of whether their scale meets the standard and their accounting is sound.
Enterprises that have been recognized as general taxpayers will not be disqualified from the general taxpayer status even if their taxable sales in a certain year do not meet the standard if they do not commit any of the following acts.
Falsely issuing VAT invoices or engaging in theft, fraud or tax resistance;
Failing to file tax returns for three consecutive months or making abnormal tax returns for six consecutive months without justifiable reasons; and
failing to keep and use VAT invoices and tax-control devices in accordance with the provisions of the law, which has caused serious consequences.
Trade enterprises that have just become general taxpayers (including small-scale taxpayers converted to general taxpayers) are required to go through a tax counseling period to become official general taxpayers, and the counseling period is generally not less than six months. During the counseling period, the tax authorities will carry out strict management, including: limiting the number of special invoices to be purchased each month, and if there is a need to over-apply, the sales of special invoices purchased and issued during the previous period will be subject to an advance payment of 4% of the value-added tax (VAT) to the competent tax authorities, and so on.
After the counseling period reaches 6 months, the tax authorities shall conduct a comprehensive review, and if the following conditions are met at the same time, the company can be recognized as a full-fledged general taxpayer.
The conclusion of tax assessment is normal
The results of interview and field inspection are normal
Enterprises' declaration and payment of taxes are normal
Enterprises are able to accurately account for the amount of input and output taxes and correctly obtain and issue special invoices and other lawful input tax deduction vouchers
Where one of the above conditions is not fulfilled, the tax authorities in charge may extend the tax counseling period or cancel the general tax payment of the enterprise. tax counseling period or cancel its general taxpayer qualification.
Tax Rate, Levy Rate
General taxpayers of VAT are subject to basic tax rate and low tax rate. Small-scale taxpayers are subject to the levy rate, and general taxpayers are also subject to the levy rate for the sale of used goods and so on.
Basic tax rate
General VAT payers are subject to a basic tax rate of 17% for all taxable behaviors, except for the following low tax and tax exemptions, etc. Special goods such as cigarettes, alcohol, and luxury goods are subject to additional consumption tax to regulate the tax burden.
Low tax rate
In order to reduce the tax burden of certain industries, in addition to the basic tax rate, a low tax rate of 13% has been stipulated. Goods subject to the low tax rate include: agricultural products; heating, cooling, hot water, gas, liquefied petroleum gas, natural gas, biogas, coal products for residential use; books, newspapers, magazines; feedstuffs, chemical fertilizers, pesticides, agricultural machinery (excluding parts and components of agricultural machinery); agricultural films; metals and non-metallic ores and minerals; and agricultural films. Agricultural films; metal and non-metallic mineral extraction products and other goods prescribed by the State Council. General VAT taxpayers selling or importing the above goods shall be subject to VAT at the low rate of 13%.
Levy rates
Small taxpayers are subject to a levy rate of 4 percent for commercial small taxpayers and 6 percent for industrial small taxpayers, and neither of them is allowed to deduct input tax.
According to the Ministry of Finance's Cai Shui [2002] No. 29 Circular on Value-added Tax Policies for Used Goods and Used Motor Vehicles, since January 1, 2002, taxpayers [regardless of whether they are VAT general taxpayers or small-sized taxpayers] have been selling used goods at a 4% levy rate and then levied a 50% reduction in the value-added tax (VAT), with no deduction of the input tax. Taxpayers selling used motor vehicles, motorcycles and yachts subject to consumption tax shall calculate the tax amount at a rate of 4% and then reduce the value-added tax by half if the selling price exceeds the original value; if the selling price does not exceed the original value, it shall be exempted from value-added tax. The sales of used motor vehicles, motorcycles and yachts by used motor vehicle business units shall be subject to a 4% levy rate and then a 50% reduction in VAT.
For the sale of tap water by water supply companies, VAT is also levied at the rate of 6% in accordance with the Circular on Issues Concerning VAT Policies in the Water Supply Industry issued by the State Administration of Taxation (SAT) No. 56, Guo Shui Fa [2002], on May 17, 2002, but at the same time, the VAT stated in the special VAT invoice obtained for the purchase of tap water from the water plant can be deducted.
Crude oil and natural gas extracted from Sino-foreign cooperative oil (gas) fields are subject to VAT at a rate of 5% in accordance with the State Council's Circular No. 10 of February 22, 1994 on Issues Relating to the Application of Provisional Regulations on Taxes on Value-added Taxes, Consumption Taxes and Business Taxes by Foreign-Invested Enterprises and Foreign Enterprises.
Tax Exemptions
Article 16 of the Provisional Regulations on Value-Added Tax of the People's Republic of China*** and the People's Republic of China stipulates that the following eight items are exempted from value-added tax:
Self-produced agricultural products sold by agricultural producers
Contraceptive medicines and paraphernalia
Antiquarian and antiquarian books
Imported instruments that are directly used for scientific research, scientific experiments and teaching, equipment
Imported materials and equipment provided by foreign governments and international organizations for free assistance
Equipment imported for processing with supplied materials, assembling with supplied parts, and compensatory trade
Items imported directly by disabled persons' organizations for the exclusive use of disabled persons
Sales of self-used items
Additionally, those that do not meet the starting point shall be exempted from VAT, and the right to reduce and exempt from VAT shall be vested in the State Council. The right to reduce or exempt VAT rests with the State Council, and no region or department has the right to reduce or exempt VAT, but the provincial tax bureaus may determine the applicable starting point within the prescribed range and in accordance with the local actual situation.
In addition to the above statutory exemptions, the Ministry of Finance, the State Administration of Taxation and other ministries and commissions, with the approval of the State Council, have issued a number of documents stipulating some new exemptions and reductions, including:
Prefabricated components manufactured on the construction site by processing factories and workshops attached to infrastructures and enterprises engaged in the business of construction and installation that are used directly in the construction projects of their own units or enterprises shall not be subject to value-added tax (VAT).
Sales of movie masters, videotape masters and audio cassette masters arising from the transfer of copyrights, and sales of computer software arising from the transfer of ownership of patented and non-patented technologies are not subject to value-added tax
Computer software products registered by the State Copyright Administration are subject to business tax, not value-added tax, if copyrights and ownerships are transferred at the time of their sales.
No VAT is levied on the supply or exploitation of unprocessed natural water, such as the supply of agricultural irrigation water from reservoirs and the self-mining of groundwater by factories for production
No VAT is levied on the income from the sale of telephone directory business by the telecommunication department and its subordinate telephone directory companies
Military supplies sold to the army and the armed police are exempted from VAT
The army and the armed police VAT exemption for steel, timber, cement, boilers and other goods produced by enterprises belonging to the system and transferred or sold within the system
VAT exemption for special equipment, instruments and meters and their spare parts imported by units of the army, the armed police and the military-industrial system with the approval of the General Logistics Department and the National Defense Science and Industry Commission
VAT exemption for import of canines imported by the army, the armed police and the public security departments
Value-added tax exemption for supplies for the disabled
Value-added tax exemption for processing and repair and fitting services provided by the disabled
Value-added tax exemption for imported articles intended for the exclusive use of disabled persons
Value-added tax exemption for building materials produced by the use of waste dregs
The imported scientific research and teaching books and journals sold by China National Book Import and Export Corporation (CNBIEC) to scientific research institutes and universities and colleges are exempted from value-added tax, Teaching books and journals are exempted from value-added tax
Maintenance fees for rural power grids collected by rural power stations are exempted from value-added tax
Agricultural production materials such as agricultural films, seeds, seedlings, fertilizers, pesticides, agricultural machinery and so on are exempted from value-added tax
Imported fertilizers and pesticides imported within the national plan are exempted from import value-added tax
Sales of grain by state-owned grain enterprises with the responsibility of collecting and storing grain are exempted from value-added tax. As well as sales of military grain, disaster relief grain, grain for reservoir immigrants and edible vegetable oil in government reserves by other grain enterprises, they are exempted from value-added tax (VAT)
VAT exemption for clinical blood supplied by blood stations to medical institutions
VAT exemption for preparations produced by and for the use of non-profit medical institutions, and VAT exemption for three years for preparations produced by and for the use of profit-making medical institutions
Sales of gold by gold production and sales units (excluding gold with the color of AU9999, AU9995, AU999, AU995; and the specifications of 50 grams, 100 grams, 1 kilogram, 3 kilograms, and 12.5 kilograms of standard gold) and gold ores (including associated gold) are exempted from value-added tax
Gold Exchange member units selling standard gold through the Gold Exchange are exempted from value-added tax (VAT) if no physical delivery occurs; if physical delivery occurs, special VAT invoices will be issued by the tax authorities in accordance with the actual transaction price, and the policy of VAT being levied and returned will be implemented, and urban maintenance and construction tax and education surcharge will be exempted at the same time
On the importation of gold (including standard gold) and gold mineral sands (including associated minerals). VAT exemption on imported gold (including standard gold) and gold ore (including associated minerals)
Diamonds traded on the Shanghai Diamond Exchange are exempted from value-added tax, while diamonds sold to the domestic market are not exempted from tax
No value-added tax will be levied on imported diamonds directly entering the Shanghai Diamond Exchange at the importing stage
College and university logistic entities provide college and university faculty and student canteens with foodstuffs, edible vegetable oils, vegetables, meat, poultry, eggs, condiments and canteen tableware. VAT exemption for food, edible vegetable oil, vegetables, meat, poultry, eggs, condiments and canteen tableware provided by university logistics entities to the canteens of teachers and students in universities
VAT exemption for income from the export of fast food provided by university logistics entities to other universities
VAT exemption for taxable products produced by school-run enterprises for use in teaching and scientific research of the university (excluding consumption tax tax taxable products)
Chinacredit, Huarong, The Great Wall and Dongfang, which have been approved by the State Council, and their branches, accepting the relevant VAT exemption for their products and services, are not entitled to VAT exemption. The four asset management companies approved by the State Council, including China Cinda, Huarong, Great Wall and Dongfang, and their branches, accept the non-performing claims of the relevant state-owned banks, and the borrowers offset the principal and interest of the loans with goods, immovable properties, intangible assets, securities and bills, etc., and are exempted from VAT on the sale of such goods, immovable properties, intangible assets, securities and bills, as well as from VAT on the use of such goods and immovable properties in the financial leasing business. The business of repairing wagons within the railway system is exempted from value-added tax (VAT)
The sale of waste materials acquired by waste materials recycling business units is exempted from VAT
Goods procured domestically by foreign governments and international organizations with free assistance are exempted from VAT
Official supplies brought in by embassies and consulates in China, goods for personal use of diplomatic representatives, and articles for settling down by the administrative and technical staff of the embassies and consulates within half a year of the arrival at the posts are exempted from VAT. Import VAT exemption for household goods brought in
VAT exemption for ship repair business of [COSCO Group]]
VAT exemption for sports equipment imported by national professional sports teams or gifted or sponsored by international organizations and foreign countries, and special clothing for competitions
VAT exemption for the 29th Olympic Games organizing committee on the re-sale of the donated goods and the income derived from the transfer of the assets after the games
VAT exemption for the income derived from the re-sale of donated goods and the transfer of the assets after the games
VAT exemption for the income derived from the sale of donated items and the transfer of assets after the games. VAT exemption
Foreign governments and international organizations are exempted from import VAT and customs duties on imported materials donated free of charge for use in the 29th Olympic Games
Non-tradable documents, books, audio-visuals and CD-ROMs imported by mail from abroad by the International Olympic Committee (IOC), international sports organizations, and other social organizations, etc., which are not to be brought into the domestic market and which are relevant to the 29th Olympic Games are exempted from import VAT and customs duty within reasonable limits of quantities. Within the scope of reasonable quantity, they shall be exempted from value-added tax and customs duty at the import stage. Non-tradable planning and design plans such as models, drawings, drawing boards, CD-ROMs of electronic documents, design instructions and thumbnails, etc., imported for the construction of the Olympic venues shall be exempted from import-related value-added tax and customs duty
Consumables (e.g., competition consumables, etc.) imported in the form of general trade for use in the construction of stadiums for the 29th Olympic Games, and equipment inseparable from the fixing of the facilities of stadiums and consumables directly used for competitions of the Olympic Games Consumables (such as match balls, etc.) imported under general trade are exempted from import link value-added tax and customs duty
The International Olympic Committee is exempted from tax on the income derived from China and related to the 29th Olympic Games, as well as the compensation income and the share of income paid by the organizing committee in accordance with the provisions of the relevant agreements and contracts
The processing and production of rail sleepers and precast cement structures for the construction of the Qinghai-Tibet Railway by the successful processing and production enterprises VAT exemption for railroad sleepers and precast cement components processed and produced by the successful processing enterprises for the construction of the Qinghai-Tibet Railway
VAT exemption for income from the sale of SARS donations by government-organized auctions or designated agencies
VAT exemption for imported relief materials, such as foodstuffs, medicines, necessities of life, and salvation tools donated by foreign groups, enterprises, and individuals to China
VAT exemption for the value-added tax on the production and sale of urea products produced by domestic enterprises was adjusted from 50 percent to 50 percent after the initial tax return. Adjusted from 50% levy and then return to temporary exemption of VAT
Import VAT exemption for commodities imported by border residents in border areas through the mutual trade with a daily value of less than RMB 1,000 per person
Import VAT exemption for self-caught aquatic products and their processed products that are caught on the high seas or in foreign waters by fishing vessels of distant-water fishery enterprises and transported back to the country for domestic sales
The use of coal ore, coal slag, oil shale and wind power production of electric power, as well as some of the state-listed new wall materials, will be subject to a 50% reduction in the value-added tax (VAT)
The above list of exemptions and exemptions is only a partial one and not a complete one.