People's Republic of China VAT tentative regulations implementing rules (amended in 2011) (December 18, 2008 Ministry of finance, State administration of taxation, the 50th release of October 28, 2011 of finance and the State administration of taxation announced 65th since November 1, 2011, the finance and the State administration of taxation on modifying People's Republic of China interim regulations on VAT rules and People's Republic of China decision on the detailed rules for the implementation of the provisional regulations of business tax amendment) article in accordance with the People's Republic of China interim regulations on value-added tax (hereinafter regulations)

    , These rules are formulated.

    Second Ordinance goods referred to in article, refers to the tangible movable property, including electricity, heat and gas.

Mentioned in the first article of the bill processing, are entrusted with the processing of the goods, is entrusted to provide raw materials and primary materials, the trustee in accordance with the client's requirements, manufactured goods and charge a processing fee of the business.

    Repair and mentioned in the first article of the Bill, was commissioned to repair the damage and loss of function of the goods, make restitution and functions of business.

Article III sale of goods mentioned in the first article of the Bill, refers to the transfer of ownership of the goods. Mentioned in the first article of the Bill provides processing, repair and installation services (hereinafter referred to as taxable), refers to the possible processing, repair and installation services.

Unit or individual businesses to hire staff for the unit or employer-provided processing, repair and installation services, are not included.

    Paid in these rules refers to from the buyers to obtain money, goods or other economic benefits.

Fourth entity or individual of the following acts, treated as a sale of goods:

(A) to deliver the goods to other units or individuals to sell;

(B) the sale of consignment goods;

(C) with two or more institutions and the implementation of an integrated accounting of taxpayer, from a transferred other agencies for the sale of goods, but the organizations located in the same County (City) except;

(D) goods produced or processed for non-VAT taxable items;

(V) production, consigned goods for collective welfare or personal consumption;

(Vi) of goods produced, processed or purchased as an investment, to other units or individual industrial and commercial households;

(VII) will come into production, processed or purchased goods are distributed to shareholders or investors;

    (VIII) will come into production, processed or purchased goods donation other units or individuals. Article fifth a sale if it relates to goods to non-VAT taxable, for mixed sales behavior.

Article sixth could be subject to this requirement, engaged in the production of goods, wholesale or retail businesses, business units and individual industrial and commercial households mixed sale, as a sale of goods, shall pay VAT on mixed sale of other units and individuals, as sales of non-VAT taxable, do not pay sales tax.

Mentioned in the first paragraph of this article non-VAT taxable, means belonging to the business tax payable transportation, construction, finance and insurance, telecommunications, culture, sports, entertainment, the scope of services taxable services.

    Of the goods referred to in the first paragraph of this article engage in production, wholesale or retail businesses, business units and individual businesses, including engaging in the production of goods, mainly wholesale or retail, and run a non-VAT taxable services, unit or individual.

Taxpayers in the sixth following a mixed sale, sales of goods shall be accounted for separately and non-VAT taxable turnover, sales VAT according to the sale of goods, non-VAT taxable turnover does not pay value added tax is not accounted for separately by the competent tax authorities approved the sales of the goods:

(A) the sale of self-produced goods and construction services;

    (B) other circumstances as stipulated by the Ministry of finance, the State administration of taxation.

    Article seventh taxpayers engaged in non-VAT taxable items, goods or taxable services should be accounted for separately for sales and non-VAT taxable turnover of projects is not accounted for separately, approved by the competent tax authorities where goods or taxable sales.

Eighth Ordinances mentioned in the first article in the People's Republic of China territory (hereinafter referred to as domestic) sales of goods or provision of processing, repair and installation services, refer to:

(A) the origin or location of goods sold in the territory;

    (B) to provide taxable services in the territory.

Nineth units mentioned in the first article of the Ordinance refers to enterprises, administrative units and public institutions, social groups, military units and other units.

    Individuals mentioned in the first article of the Bill refers to individual industrial and commercial households and other individuals.

    Article tenth leased or contracted out to other units or individuals operating, the lessee or the contractor for the taxpayer.

11th article small scale taxpayers yiwai of taxpayers (following said general taxpayers) for sales goods returned or folding let and returned to purchase party of VAT amount, from occurred sales goods returned or folding let Dang period of pin items tax in the deductions; for purchased into goods exit or folding let and recovered of VAT amount, from occurred purchased into goods exit or folding let Dang period of purchase tax in the deductions. General taxpayer sells goods or taxable services, issue VAT invoice, sales return or discount, invoicing in error situations, such as, shall be governed by the provisions of the State administration of taxation issued the Scarlet VAT invoices.

    Issue Scarlet VAT invoices not according to stipulations, VAT shall not be deducted from the sales tax. 12th article Ordinance sixth article first paragraph by said price outside costs, including price outgoing purchase party charged of procedures fee, and subsidies, and Fund, and fund-raising fee, and returned profit, and award fee, and penalty, and late fees, and extension payment interest, and compensation gold, and generation received payments, and generation advances items, and packaging fee, and packaging real rent, and reserves fee, and quality fee, and transport handling fee and other various nature of price outside charges.

But does not include the following items:

(A) entrusted with the processing of apply for consumption tax collected by the consumer pay the consumption tax;

(B) reimbursed transport costs also complies with the following conditions:

1. the carrier sector invoicing of transport costs to the purchaser;

2. the taxpayer will forward the invoice to the buyer.

(C) collect also complies with the following conditions of Government funds or administrative fees:

1. by the State Council or the Ministry of finance approved the establishment of Government funds by the State Council or provincial-level people's Governments and their fiscal, price authorities approved the establishment of the administrative fees;

2. the charge issued printed above the provincial level financial sector the financial instrument;

3. pay financial receipts in full.

    (D) sales of goods such as insurance agents and insurance premiums charged to purchasers, and charged to the purchaser's purchase of the buyer to pay the vehicle purchase tax and vehicle licence fees.

    13th mixed sale in pursuance of the rules article fifth shall pay the value-added tax, its sales of goods sales and non-VAT taxable turnover total.

14th General taxpayers engaged in selling goods or taxable services used pricing methods of combined sales and sales tax, calculated according to the following formula sales:

    Sales tax = sales ÷ (1+ tax) 15th a taxpayer according to currencies other than the Renminbi clearing sales, sales of its currency conversion rate you can select sales occurred on the day or the 1st of the month the Yuan parity rate.

    Taxpayers should be identified in advance of the conversion rate, determined shall not be changed within 1 year.

16th taxpayer Bill seventh referred to much lower price and without due cause or have the details set fourth in article as with the sale of goods Act and no sales person, sales in the following order:

(A) by reference to the taxpayer in recent times the average selling price of similar goods;

(B) by other taxpayers, the most recent period the average selling price of similar goods; (C) the composite assessable price.

The formula for the composite assessable price:

Composite assessable price = cost x (cost of 1+ margin)

Belonging to apply for excise goods, the composite assessable price plus consumption tax. Cost refers to the equation: sales of produced goods for the actual production costs, sales for the actual purchase cost of the purchased goods.

    Formula of cost-profit ratio is determined by the State administration of taxation.

    17th section eighth subparagraph (c) referred to the purchase price, including taxpayers who purchase in agricultural products purchase invoice or the price indicated on the sales invoice and pay the tobacco tax.

    18th eighth paragraph to subsection (d) transport costs mentioned in item amount refers to the fees indicated on the document of transport transportation costs (including railway line railway line and transportation costs), the building Fund, does not include handling fees, insurance and other miscellaneous charges.

    Article 19th VAT tax deduction certificate referred to in section Nineth, refers to the special invoices for value-added tax, customs and import VAT payment, purchasing invoices and produce sales invoices, and shipping cost documents.

    20th mixed sale in pursuance of the rules article fifth shall pay value added tax, involved in hybrid sales in the non-VAT taxable goods purchased by input tax, in line with the eighth article of the Bill, granted from the sales tax deduction.

21st article tenth of the Ordinance (a) referred to purchase goods, not including sales tax taxable items (excluding VAT), also used in non-VAT taxable items, shall be exempt from VAT (hereinafter referred to as tax exempt) programs, collective welfare or individual consumption of fixed assets.

    Fixed assets referred to in the preceding paragraph, refers to the machine using the term exceeds 12 months, machinery, transport equipment and other production-related equipment, tools, implements, etc.

    22nd tenth article of the rules (a) referred to the individual consumer including taxpayers ' entertainment consumption.

Article 23rd section tenth part (a) and non-VAT taxable items mentioned in these rules refers to providing non-VAT taxable service, the transfer of intangible asset and sale of real estate and real estate projects under construction.

Real estate is referred to in the preceding paragraph cannot be moved or moving will cause the property after property, shape change, including buildings, structures, and other attachments.

    The taxpayers real estate building, rebuilding, expansion, restoration, decoration, are among the real estate projects under construction.
24th article tenth of the Ordinance (ii) abnormal loss asserted, is due to poor management were stolen, lost, mildew and bad losses.

    25th taxpayers their own answer to the consumption tax for motorcycles, cars, yachts, and its input tax shall not be deducted from the sales tax.

26th general taxpayers tax allowances could not be divided or non-VAT taxable shall not deduct input tax, according to the following formula to calculate the input tax shall not be deductible:

    Shall not be deductible input tax = unable to partition the full input tax for the month x monthly allowance, non-VAT taxable turnover sales total ÷ total sales for the month, total turnover

    27th article has arrived buckle purchase tax of purchased into goods or should tax labor, occurred Ordinance tenth article provides of case of (duty-free project, and non-VAT should tax labor except), should will the items purchased into goods or should tax labor of purchase tax from Dang period of purchase tax in the deductions; cannot determine the items purchase tax of, by Dang period actual cost calculation should deductions of purchase tax.

Article 28th of small-scale taxpayer referred to in section 11th standard is:

(A) of a taxpayer engaged in production of goods or provide taxable services, and mainly engaged in the production of goods or provide taxable services, and run a wholesale or retail of goods taxpayer, years to apply for sales tax revenue (hereinafter referred to as the taxable sales) in less than 500,000 yuan (including the number, the same below);

(B) subject to paragraph (a), other than those provided for taxpayers, below the annual taxable sales of 800,000 yuan.

    Referred to in the first paragraph of this article engages in the production or providing taxable services, means taxpayers years production of goods or provide taxable sales share of total annual taxable sales of more than 50%.

    29th annual taxable sales of more than standard small scale taxpayers of other individuals in small scale taxpayers taxed on non-enterprise units, don't happen very often should tax businesses selectable by small-scale taxpayers.

30th small sales do not include the taxable amount of the taxpayer.

Small-scale taxpayers engaged in selling goods or taxable sales and consolidated pricing method of the taxable amount, sales calculated according to the following formula:

    Sales tax = sales ÷ (1+ rates)

    31st small-scale taxpayers sell goods returned or discounted refund to buyer's sales from the sales of goods returned or deduct discount sales in the period.

    13th and 32nd Ordinances referred to in these rules sound accounting refers to set the book in accordance with the uniform accounting system of the State, according to legal and valid voucher account.

    Article 33rd unless otherwise prescribed by the State administration of taxation, after the taxpayers once identified as the general taxpayer, not to small scale taxpayers.

34th under any of the following circumstances, according to sales tax payable shall be calculated according to the VAT rate may not deduct input tax, and do not use special invoices for value-added tax:

(A) the general taxpayer accounting is not perfect, or not being able to provide accurate tax information;

    (B) except as provided in this rule 29th, a taxpayer with sales of more than standard small scale taxpayers, not to apply the general taxpayer qualification process.

35th Ordinance 15th part of the scope of the exemptions provided for in article, qualified as follows:

(A) in subparagraph (a) referred to agriculture refers to farming, livestock farming, forestry, animal husbandry and aquatic products industry.

Agricultural producers, including units and individuals engaged in agricultural production.

Agricultural refers to primary agricultural products, specific scope determined by the Ministry of finance, the State administration of taxation.

(B) in paragraph (c) of said second hand book, was directed to social acquisitions of books and old books.

    (C) subparagraph (VII) referred to themselves using items refers to the other items of personal use. 36th taxpayers engaged in selling goods or taxable services apply the exemption provisions, can give up duty-free, in accordance with the provisions of the Ordinance to pay value added tax.

    Gave up after tax, within 36 months no longer tax deductible.

37th VAT threshold to limit the scope of an individual.

VAT threshold provides as follows:

(A) sales of goods, sales of 5000-20000 Yuan per month;

(B) taxable sales, monthly sales of 5000-20000 Yuan;

(C) the tax, for each of (a) sales of 300-500 Yuan.

Sales referred to in the preceding paragraph, refers to the first paragraph of this article 30th said sales for small-scale taxpayers.

    Provinces, autonomous regions and municipalities directly under the financial offices (bureaus) and State administration of taxation should be within the specified range, according to the actual situation of the region applicable starting points, and submitted to the Ministry of finance, the State administration of taxation records.

38th article 19th first subparagraph (a) provides the date on which the sale amount or to obtain copies of receipts from the credentials on the day, according to the different sales settlement, in particular to:

(A) direct payment for sales of goods, irrespective of whether the goods sent are received or obtained sales selling credentials on the day;

(B) take d/sold and authorizes the Bank to collect the goods, for goods and collection procedures are completed on the day of issue;

(Iii) credit and installment selling of goods, for the day of the date of receipt of the written contract, no written contract or written contract does not stipulate the date for crediting the, for the day of dispatch of the goods;

(D) payment received in advance sales of goods, for goods on the day, but production and sales production duration of more than 12 months of large-scale mechanical equipment, ships, aircraft and other goods, in order to receive advance written contract or the date of receipt that day; (E) entrust other taxpayers to sell goods, in order to receive and sell the units to sell lists or receive all or part of the purchase price of the day.

Do not receive a list of dealers and money, for consignment goods expiry of 180 days after the day of issue;

(F) taxable sales, in order to provide services at the same time receiving sales or to obtain copies of credentials of sale day;

    (VII) the taxpayer subsection of this article fourth (c) through (VIII) was treated as a sale of goods Act, for the day of the transfer of the goods. 39th section 23rd with 1 quarter for tax limitation provision applies only to small-scale taxpayers.

    Small-scale taxpayers ' specific payment period by the competent tax authorities according to the size of its tax payable shall be approved separately. 40th article of the rules shall enter into force on January 1, 2009.