Related Instructions For Foreign Tax Application Of Value Added Tax

In accordance with the Circular of the eight session of the five session of the people's Congress of December 29, 1993 on the Provisional Regulations on the application of the Provisional Regulations on value added tax, consumption tax and business tax for foreign invested enterprises and foreign enterprises, the Provisional Regulations of the People's Republic of China on value added tax shall apply to the value-added tax of foreign invested enterprises and foreign enterprises since January 1, 1994.

According to the Ordinance, value added tax shall be paid to units and individuals who sell goods in People's Republic of China or provide processing, repair and repair services and imported goods.

First, the sale of goods in People's Republic of China means that the place of sale or location of the goods sold in the territory is deemed to be sold by the unit or individual operator.

(1) deliver goods to others for sale;

(2) sale of consignment goods;

(3) taxpayers who have more than two institutions and carry out unified accounting shall pfer goods from one organization to another for sale.

(4) to use the goods produced or processed by themselves for non taxable projects;

(5) invest the goods produced and processed by oneself as other units or individual operators.

(6) distributing goods produced, commissioned, processed or purchased to shareholders or investors;

(7) the goods that are produced or commissioned are used for collective welfare or personal consumption;

(8) give away assets, goods processed or purchased without compensation to others.

Two, provide processing, repair and repair services, refers to paid processing, repair and repair services, sales of taxable labor occurred in the territory.

      三、增值税法为小规模纳税人设定了一些专属适用的待遇，小规模纳税人的标准如下：（1）从事货物生产或提供应税劳务，以及以从事货物生产或提供应税劳务为主，并兼营货物批发或零售的纳税人，年应征增值税销售额在100万元以下的；（2）从事货物批发或零售的纳税人，年应税销售额在180万元以下的。

Tax rate.

      根据现行增值税规定，低税率的适用范围仅限定于下列几类货物：

(1) grain and oil products;

(2) tap water, heating, cooling, hot water, gas, liquefied petroleum gas, natural gas, biogas and civilian coal products;

(3) books, newspapers and magazines;

(4) feed, fertilizer, pesticide, agricultural film and agricultural machinery;

(5) other goods stipulated by the State Council.

According to the export goods, there are two main categories: one is goods declared for customs clearance; the other is goods pported to customs bonded bonded factories, bonded warehouses and bonded areas.

The amount of tax payable is calculated.

Whether it is a general taxpayer or a small taxpayer, its tax basis is sales.

      准予从销项税额中抵扣的进项税额：

(1) value added tax specified in the VAT invoices obtained from the seller;

(2) the value added tax specified in the duty paid voucher obtained from the customs;

(3) other tax laws, such as pport costs, acquired tax exempt agricultural products, and other tax laws are allowed to calculate the deductions.

      不得抵扣的进项税额：

(1) fixed assets purchased;

(2) purchase of goods or taxable services for non taxable items;

(3) purchase of goods or taxable services for tax-free items;

(4) goods purchased or taxable services for collective welfare or personal consumption;

(5) purchase of goods with abnormal losses;

(6) goods purchased or taxable services consumed in products and finished products which are not normally damaged.

     增值税由税务机关征收，进口货物的增值税由海关代征。个人携带或邮寄进境自用物品的增值税，连同关税一并计征。

Taxpayers selling goods or taxable services shall issue VAT invoices to purchasers, and separately specify sales and output tax on value-added tax invoices.

(1) providing taxable services or selling goods to consumers;

(2) selling duty-free goods;

(3) small-scale taxpayers sell goods or provide taxable services.