People's Republic of China promulgated by Decree No. 538 of the People's Republic of China interim regulations on VAT on November 5, 2008 the 34th Executive meeting of the State Council amended by, now revised the People's Republic of China published in the provisional regulations on value-added tax, as of January 1, 2009.
November 10, 2008, Prime Minister Wen Jiabao People's Republic of China VAT tentative regulations (December 13, 1993 People's Republic of China promulgated by Decree 134th posted November 5, 2008, the 34th Executive meeting of the State Council amended by) article in the People's Republic of China territory selling goods or providing processing, repair and installation services as well as imported goods and individuals, for VAT taxpayers should pay VAT in accordance with these regulations.
Second VAT rate: (a) for taxpayers selling or importing goods subject to this section, (b), (c) provides, at 17%.
(B) for taxpayers selling or importing the following goods, the tax rate 13%: 1. food, edible vegetable oil, 2. running water, heating, air conditioning, hot water, gas, liquefied petroleum gas, natural gas, methane, coal products for residents, 3. books, newspapers, magazines, 4. feeds, fertilizers, pesticides, agricultural machinery, agricultural film, 5. other goods as prescribed by the State Council.
(C) the taxpayer exports, tax rate is zero, but, except as otherwise provided by the State Council.
(D) the taxpayer of processing, repairs and replacement services (hereinafter referred to as taxable), at 17%.
Tax adjustments decided by the State Council.
Taxpayers with different tax rates article of goods or taxable services, shall be accounted for separately with different tax rates and taxable sales sales not accounted for separately from the higher tax rate. Article fourth except as provided in this section 11th out, taxpayers engaged in selling goods or provide taxable services (hereinafter referred to as sale of goods or taxable services), the tax payable for the current period sales tax deduction of the input tax for the current period balances.
Tax payable calculation formula: tax payable = output tax-input tax for the current period in the current period current period sales tax is less than at the time of lack of input tax deduction, the excess can be carried forward for the following periods to offset. Fifth taxpayers engaged in selling goods or taxable services, in accordance with the sales and rates provided for in article II of this Ordinance and VAT charged to purchasers, the sales tax.
Sales tax calculation formula: x tax rate article sixth sales tax = sales for taxpayers engaged in selling goods or taxable services charged to the buyer the full purchase price and additional fees and charges, but not charged sales tax. Sales are in RMB.
Taxpayers to currencies other than the Renminbi clearing sales, shall be converted into renminbi.
Article seventh taxpayers engaged in selling goods or taxable services of much lower price and without justification, approved by the competent tax authorities of their sales.
Article eighth for taxpayers who purchase goods or receive taxable services (hereinafter referred to as goods purchased or taxable) VAT paid or borne, as input tax.
The following grant from the sales tax to deduct the input tax: (a) obtained from the seller the VAT sales tax amount indicated on the invoice.
(B) obtained from the Customs Office of import VAT payment as indicated on the sales tax amount. (C) the purchase of agricultural products, with the exception of VAT or customs import VAT payment made books, according to the purchasing of agricultural products indicated on the invoices or sales invoices purchase and 13% calculation of deduction rate of income tax. Input tax calculation formula: = purchase price x the input tax deduction rate (iv) purchase or sale of goods as well as cover the cost of transport in the course of production and operation, according to transport fee settlement documents as indicated on the transport fee and 7% calculation of deduction rate of income tax.
Input tax calculation formula: x = transport costs amount deducted the input tax rate granted to offset projects and adjustment of the deduction rate, determined by the State Council.
Nineth taxpayers who purchase goods or taxable services, VAT tax voucher is not made in accordance with laws, administrative regulations, or the relevant provisions of the competent tax departments under the State Council, its input tax shall not be deducted from the sales tax.
Tenth Article following project of purchase tax shall not from pin items tax in the arrived buckle: (a) for non-VAT should tax project, and exemption VAT project, and collective welfare or personal consumption of purchased into goods or should tax labor; (ii) non-normal loss of purchased into goods and the related of should tax labor; (three) non-normal loss of in products, and produced finished by consumption of purchased into goods or should tax labor; (four) State financial, and tax competent sector provides of taxpayers use consumer;
(E) of subsection (a) to (d) of goods in transportation costs of shipping charges and sales tax exempt goods. 11th small-scale taxpayers engaged in selling goods or taxable services, implement tax payable shall be calculated in accordance with sales and rates the easy way, and may not deduct input tax.
Tax payable calculation formula: tax payable = turnover x percentage of small-scale taxpayer standards shall be formulated by the financial and tax department.
12th VAT small scale taxpayers is 3%.
Adjustment of levy rates, determined by the State Council. 13th small scale taxpayers taxpayers shall apply to the competent tax authority other than accreditation.
Specific measures shall be formulated by the competent tax departments under the State Council.
Small scale taxpayers with sound accounting provides accurate tax information, may apply to the competent tax authorities where the qualification, not as a small scale taxpayers, tax payable shall be calculated according to the relevant provisions of this regulation. 14th taxpayer imports in accordance with the composite assessable price and the tax rates tax payable shall be calculated as provided in clause II of the Ordinance.
Composition meter tax price and should tax amount calculation formula: composition meter tax price = tariff-paid price + tariff + consumption tax should tax amount = composition meter tax price x tax 15th article following project exemption VAT: (a) agricultural producers sales of since produced agricultural; (ii) contraceptive drug and appliances; (three) old books; (four) directly for scientific research, and science test and teaching of imports instrument, and equipment; (five) foreign Government, and international organization free assistance of imports material and equipment;
(F) imported directly by organizations of persons with disabilities articles for persons with disabilities; (VII) used by the sales of their goods. Except as provided in the preceding paragraph, a sales tax exemption or reduction items shall be stipulated by the State Council.
Regions, departments shall not regulate any tax exemption or reduction items.
16th taxpayers tax exemption or reduction items, sales tax exemption or reduction items shall be accounted for separately; sales are not accounted for separately, no exemption or reduction.
17th payer sales did not meet state, the competent tax departments under the VAT threshold, be exempt from VAT reach threshold, required full payment of VAT in accordance with this Ordinance.
18th People's Republic of China offshore entities or individuals in the territory to provide taxable services, there is no operator in the territory, with its agents in the territory shall be the withholding; the territory has no agent, buyer shall be the withholding.
Article 19th liability to VAT occurs: (a) the sale of goods or taxable services, it is the date the sale amount or taking day of sale amount are obtained credentials; the first invoice, invoice for the day.
(B) the imported goods for the import declaration of the day.
VAT taxed at the time when the obligation for the taxpayers ' liability to VAT of the day.
20th of VAT collected by the tax authorities, VAT on imported goods by the Customs on behalf of the. Or mailed articles carried by individuals in the sales tax, levied in conjunction with tariff.
Specific measures by the customs tariff Commission of the State Council in conjunction with the departments concerned.
21st taxpayers engaged in selling goods or taxable services shall be made to obtain the VAT issue VAT invoice of the purchase invoice and VAT separately indicated on sales and sales tax.
Belonging to one of the following situations shall not issue VAT invoice: (a) the sale of goods or taxable services to individual consumers, (b) sale of goods or taxable services apply the exemption provisions; (c) the small-scale taxpayers engaged in selling goods or taxable services. 22nd place of payment of VAT is: (a) fixed operators shall provide the competent tax authorities of the place of taxation.
Head Office and branch office are not the same counties (cities), each Party shall declare tax to the local competent tax authorities; by the competent financial and tax authorities or authorized by approval of the financial and tax authorities, by the head office total taxes to the competent tax authorities of the place of head office.
(Ii) fixed industry households to outside (City) sales goods or should tax labor, should to its institutions location of competent tax organ application issued out business activities tax management proved, and to its institutions location of competent tax organ declared tax; not issued proved of, should to sales to or labor occurred to of competent tax organ declared tax; not to sales to or labor occurred to of competent tax organ declared tax of, by its institutions location of competent tax organ fill tax paragraph.
(C) the non-fixed operators selling goods or taxable services, sales or service shall be to the competent tax authorities tax; not to the sale or service of the competent tax authorities where the tax, by the competent tax authorities of the place or places of residence taxation.
(D) the imported goods should be declared to the customs clearance and customs taxes.
Withholding agents shall be filed with the local competent tax authorities of the place of residence or to pay the withholding tax. Article 23rd VAT payment periods for the 1st, 3rd, 5th, 10th, 15th, 1 month or 1 quarter.
The specific tax deadlines of taxpayers, by the competent tax authorities based on the size of the taxpayer's tax payable, respectively approved; not as a fixed-term tax that can be taxed.
Taxpayers 1 to 1 or 1 quarter tax payment period, from the date of the expiration of the tax in the 15th; 1st, 3rd, 5th, 10th or 15th 1 tax period, from the date of the expiration of the withholding tax in the 5th, on the 1st of the next month of 15th tax and closing last month of tax payable.
Term of the withholding tax solutions, in accordance with the provisions of the preceding two paragraphs. 24th payer imports, customs issues the import VAT payment should be paid within 15th of taxes.

25th payer exported goods for refund (exemption) provisions shall be made to the customs export formalities, export declarations and other relevant documents, provides export refund (exemption) the reporting period on a monthly basis to the competent tax authorities to handle the export refund (exemption).
Specific measures shall be formulated by the finance and tax departments under the State Council.
Export refund after the return of the goods, or cancel, the taxpayer shall pay back taxes.
Article 26th value added tax collection and management in accordance with the People's Republic of China Law on tax collection and management and the relevant provisions of this Ordinance. 27th article of the regulations come into force on January 1, 2009.