Home | Hotels | Hotels Video | China Flights | China Train Tickets | Main cities | China map | Contact us | Reservation Status  

 China Law information


(State Council: 13 December 1993)

(State Council: 13 December 1993) Whole Doc.

Article 1 All units and individuals engaged in the sales of goods, provision of processing, repairs and replacement services, and the importation of goods within the territory of the People's Republic of China are taxpayers of Value-Added Tax (hereinafter referred to as 'taxpayers'), and shall pay VAT in accordance with these Regulations.

Article 2 VAT rates: (1) For taxpayers selling or importing goods, other than those stipulated in items (2) and (3) of this Article, the tax rate shall be 17%.

(2) For taxpayers selling or importing the following goods, the tax rate shall be 13%: I. Food grains, edible vegetable oils; II. Tap water, heating, air conditioning, hot water, coal gas, liquefied petroleum gas, natural gas, methane gas, coal/charcoal products for household use; III. Books, newspapers, magazines; IV. Feeds, chemical fertilizers, agricultural chemicals, agricultural machinery and covering plastic film for farming; V. Other goods as regulated by the State Council.

(3) For taxpayers exporting goods, the tax rate shall be 0%, except as otherwise stipulated by the State Council.

(4) For taxpayer providing processing, repairs and replacement services (hereinafter referred to as 'taxable services'), the tax rate shall be 17%.

Any adjustments to the tax rates shall be determined by the State Council.

Article 3 For taxpayers dealing in goods or providing taxable services with different tax rates, the sales amounts for goods or taxable services with different tax rates shall be accounted for separately. If the sales amounts have not been accounted for separately, the higher tax rate shall apply.

Article 4 Except as stipulated in Article 13 of these Regulations, for taxpayers engaged in the sales of goods or the provision of taxable services (hereinafter referred to as 'selling goods or taxable services'), the tax payable shall be the balance of output tax for the period after deducting the input tax for the period. The formula for computing the tax payable is as follows: Tax payable=Output tax payable for the period-Input tax for the period If the output tax for the period is less than and insufficient to offset against the input tax for the period, the excess input tax can be carried forward for set-off in the following periods.

Article 5 For taxpayers selling goods or taxable services, the output tax shall be the VAT payable calculated based on the sales amounts and the tax rates prescribed in Article 2 of these Regulations and collected from the purchasers. The formula for computing the output tax is as follows: Output tax=Sales amount x Tax rate Article 6 The sales amount shall be the total consideration and all other charges receivable from the purchasers by the taxpayer selling goods or taxable services, but excluding the output tax collectible.

The sales amount shall be computed in renminbi. The sales amount of the taxpayer settled in foreign currencies shall be converted into renminbi according to the exchange rate prevailing in the foreign exchange market.

Article 7 Where the price used by the taxpayer in selling goods or taxable services is obviously low and without proper justification, the sales amount shall be determined by the competent tax authorities.

Article 8 For taxpayers who purchase goods or receive taxable services (hereinafter referred to as 'purchasing goods or taxable services'), VAT paid or borne shall be the input tax.

The amount of input tax that can be credited against the output tax, other than the situations specified in Paragraph 3 of this Article, shall be restricted to the amount of VAT payable as indicated on the following VAT credit document: (1) VAT indicated in the special VAT invoices obtained from the sellers; (2) VAT indicated on the tax payment receipts obtained from the customs office. The creditable input tax for the purchasing of tax exempt agricultural products is calculated based on a deemed deduction rate at 10% on the actual purchasing price. The formula for calculating the input tax is as follows: Input tax = Purchasing price x Deduction rate Article 9 Where taxpayers purchasing goods or taxable services have not obtained and kept the VAT credit document in accordance with the regulations, or the VAT payable and other relevant items in accordance with the regulations are not indicated on the VAT credit document, no input tax shall be credited against the output tax.

Article 10 Input tax on the following items shall not be credited against the output tax: (1) Fixed assets purchased; (2) Goods purchased or taxable services used for non-taxable items; (3) Goods purchased or taxable services used for tax exempt items; (4) Goods purchased or taxable services used for group welfare or personal consumption; (5) Abnormal losses of Goods purchased; (6) Goods purchased or taxable services consumed in the production of work-in-progress or finished goods which suffer abnormal losses.

Article 11 Small-scale taxpayers engaged in selling goods or taxable services shall use a simplified method for calculating the tax payable.

The criteria for small-scale taxpayers shall be regulated by the Ministry of Finance.

Article 12 The rate leviable on the small-scale taxpayers selling goods or taxable services shall be 6%.

Any adjustment to the leviable rate shall be determined by the State Council.

Article 13 For small-scale taxpayers selling goods or taxable services, the tax payable shall be calculated based on the sales amount and the leviable rate prescribed in Article 12 of these Regulations. No input tax shall be creditable. The formula for calculating the tax payable is as follows: Tax payable = Sales amount x leviable rate The sales amount shall be determined in accordance with the stipulations of Article 6 and Article 7 of these Regulations.

Article 14 Small-scale taxpayers with sound accounting who can provide accurate taxation information may, upon the approval of the competent tax authorities, not be treated as small-scale taxpayers, The tax payable shall be computed pursuant to the relevant stipulations of these Regulations.

Article 15 For taxpayers importing goods, tax payable shall be computed based on the composite assessable price and the tax rates prescribed in Article 2 of these Regulations. No tax will be credited. The formulas for computing the composite assessable price and the tax payable are as follows: Composite assessable price =Customs dutiable value + Customs Duty + Consumption Tax Tax payable = Composite assessable price x Tax rate Article 16 The following items shall be exempt from VAT: (1) Self-produced agricultural products sold by agricultural producers; (2) Contraceptive medicines and devices; (3) Antique books; (4) Importation of instruments and equipment directly used in scientific research, experiment and education; (5) Importation of materials and equipment from foreign governments and international organizations as assistance free of charge; (6) Equipment and machinery required to be imported under contract processing, contract assembly and compensation trade; (7) Articles imported directly by organizations for the disabled for special use by the disabled; (8) Sale of goods which have been used by the sellers. Except as stipulated in the above paragraph, the VAT exemption and reduction items shall be regulated by the State Council. Local governments or departments shall not regulate any tax exemption or reduction items.

Article 17 For taxpayers engaged in tax exempt or tax reduced items, the sales amounts for tax exempt or tax reduced items shall be accounted for separately. If the sales amounts have not been separately accounted for, no exemption or reduction is allowed.

Article 18 For taxpayers whose sales amounts have not reached the VAT minimum threshold stipulated by the Ministry of Finance, the VAT shall be exempt.

Article 19 The time at which a liability to VAT arises is as follows: (1) For sales of goods or taxable services, it is the date on which the sales sum is received or the documented evidence of right to collect the sales sum is obtained.

(2) For importation of goods, it is the date of import declaration.

Article 20 VAT shall be collected by the tax authorities. VAT on the importation of goods shall be collected by the customs office on behalf of the tax authorities.

VAT on self-used articles brought or mailed into China by individuals shall be levied together with Customs Duty. The detailed measures shall be formulated by the Tariff Policy Committee of the State Council together with the relevant departments.

Article 21 Taxpayers selling goods or taxable services shall issue special VAT invoices to the purchasers. Sales amounts and output tax shall be separately indicated in the special VAT invoices.

Under one of the following situations, the invoice to be issued shall be an ordinary invoice rather than the special VAT invoice: (1) Sale of goods or taxable services to consumers; (2) Sale of VAT exempt goods; (3) Sale of goods or taxable services by small-scale taxpayers.

Article 22 The place for the payment of VAT is as follows: (1) Businesses with a fixed establishment shall report and pay tax with the local competent tax authorities where the establishment is located. If the head office and branch are not situated in the same county (or city), they shall report and pay tax separately with their respective local competent tax authorities. The head office may, upon the approval of the State Administration for Taxation or its authorised tax authorities, report and pay tax on a consolidated basis with the local competent tax authorities where the head office is located.

(2) Businesses with a fixed establishment selling goods in a different county (or city) shall apply for the issuance of an outbound business activities tax administration certificate from the local competent tax authorities where the establishment is located and shall report and pay tax with the local competent tax authorities where the establishment is located. Businesses selling goods and taxable services in a different county (or city) without the outbound business activities tax administration certificate issued by the local competent tax authorities where the establishment is located, shall report and pay tax with the local competent tax authorities where the sales activities take place. The local competent tax authorities where the establishment is located shall collect the overdue tax which has not been reported and paid to the local competent tax authorities where the sales activities take place.

(3) Businesses without a fixed base selling goods or taxable services shall report and pay tax with the local competent tax authorities where the sales activities take place.

(4) For importation of goods, the importer or his agent shall report and pay tax to the customs office where the imports are declared.

Article 23 The VAT assessable period shall be one day, three days, five days, ten days, fifteen days or one month. The actual assessable period of the taxpayer shall be determined by the competent tax authorities according to the magnitude of the tax payable of the taxpayer; tax that cannot be assessed in regular periods may be assessed on a transaction-by-transaction basis.

Taxpayers that adopt one month as an assessable period shall report and pay tax within ten days following the end of the period. If an assessable period of one day, three days, five days, ten days or fifteen days is adopted, the tax shall be prepaid within five days following the end of the period and a monthly return shall be filled with any balance of tax due settled within ten days from the first day of the following month.

Article 24 Taxpayers importing goods shall pay tax within seven days after the issuance of the tax payment certificates by the customs office.

Article 25 taxpayers exporting goods with the applicable 0% tax rate shall, upon completion of export procedures with the customs office, apply for the tax refund on those export goods to the tax authorities on a monthly basis based on such relevant documents as the export declaration document. The detailed measures shall be formulated by the State Administration for Taxation.

Where the return of goods or the withdrawal of the customs declaration occurs after the completion of the tax refund on the export goods, the taxpayer shall repay the tax refunded according to the laws.

Article 26 The collection and administration of VAT shall be conducted in accordance with the relevant regulations of the and these Regulations.

Article 27 The collection of VAT from foreign investment enterprises and foreign enterprises shall be conducted in accordance with the resolutions of the standing Committee of the National People's Congress.

Article 28 The Ministry of Finance shall be responsible for the interpretation of these Regulations and for the formulation of the Detailed Rules and Regulations for the Implementation of these Regulations.

Article 29 These Regulations shall come into effect from January 1, 1994,
and the promulgated by the State Council on September 18, 1984 shall be repealed on the same date.


Search China Hotels China Hotels:
Please Select a City:
Find Your Hotel With China Map
Check-in:
Show Calendar
Check-out:
Show Calendar
Currency Adults Child

Search China Flight Ticket China Flight:
One Way Round-Trip
Departure city:
Destination:
Departure date:
Return date:



China Cities:
China Introduction
Beijing Travel Info
Changchun Travel Info
Changsha Travel Info
Chengde Travel Info
Chengdu Travel Info
Chongqing Travel Info
Dali Travel Info
Dunhuang Travel Info
Guilin Travel Info
Haikou Travel Info
Hangzhou Travel Info
Harbin Travel Info
Nanning Travel Info
Ningbo Travel Info
Qingdao Travel Info
Shanghai Travel Info
Shenyang Travel Info
Shenzhen Travel Info
Suzhou Travel Info
Taian Travel Info
Tianjin Travel Info
Weihai Travel Info
Wuyishan Travel Info
Xiamen Travel Info
Xian Travel Info
Yangzhou Travel Info
Zhuhai Travel Info

China Hotels
Aksu
Alxa
Anqing
Anshan
Anshun
Anyang
Baishan
Baoding
Baoji
Baotou
Bazhong
Beidaihe
Beihai
Beijing
Bengbu
Binzhou
Bozhou
Cangzhou
ChangChun
Changde
Changsha
Changshu
Changzhi
Changzhou
Chaohu
Chaoyang
Chaozhou
Chengde
Chengdu
Chenzhou
Chifeng
Chongqing
Chuxiong
Chuzhou
Cixi
Dali
Dalian
Dandong
Daqing
Datong
Daxinanling
Daye
Dehong
Dengfeng
Deyang
Dezhou
Dongguan
Dongxing
Dongying
Dujiangyan
Dunhuang
Emeishan
Enshi
FangChengGang
Fenghua
Fenghuang
Foshan
Fuding
Fushun
Fuyang
Fuzhou
Ganzhou
Guang'an
Guangyuan
GuangZhou
Guilin
Guiyang
Haikou
Haining
Handan
Hangzhou
Harbin
Hefei
Hegang
Heihe
Hengshui
Hengyang
Hetian
Heyuan
Heze
Hohhot
HongKong
Huaian
Huaibei
Huaihua
Huainan
Huangshan
Huangshi
Huizhou
Hulunbeier
Huzhou
Ji'an
Jiamusi
Jiangmen
Jiangyin
Jiaozuo
Jiaxing
Jiayuguan
Jieyang
Jilin
Jinan
Jincheng
Jingdezhen
Jinggangshan
Jingmen
Jingzhou
Jinhua
Jining
Jinzhong
Jiuhuashan
Jiujiang
Jiuquan
Jiuzhaigou
Jixi
Jiyuan
Kaifeng
Kaiping
Karamay
Kashen
Korla
Kunming
Kunshan
Langfang
Lanzhou
Leshan
Lhasa
Lianyungang
Liaocheng
Liaoyang
Lijiang
Linfen
Linyi
Lishui
Liuzhou
Longyan
Loudi
Luoyang
Lushan
Maanshan
Macau
Maoming
Meishan
Meizhou
Mianyang
Mudanjiang
Nanchang
Nanchong
Nanjing
Nanning
Nanping
Nantong
Nanyang
Ningbo
Ningde
Ordos
Panjin
Panzhihua
Penglai
Pingxiang
Pingyao
Putian
Putuoshan
Qian'nan
Qiandaohu
Qiandongnan
Qidong
Qingdao
Qingyuan
Qinhuangdao
Qionghai
Qiqihaer
Qitaihe
Quanzhou
Qufu
Qujing
Quzhou
Rizhao
Ruian
Sanmenxia
Sanming
Sanya
Shanghai
Shangrao
Shangri-la
Shantou
Shanwei
Shaoguan
Shaoshan
Shaoxing
Shenyang
Shenzhen
Shijiazhuang
Shishi
Shiyan
Shouguang
Suining
Suizhou
Suqian
Suzhou(Jiangsu)
Taian
Taicang
Taiyuan
Taizhou(Jiangsu)
Taizhou(Zhejiang)
Tangshan
Tengchong
Tianjin
Tianshui
Tieling
Tonghua
Tongliao
Tongling
Tongren
Turpan
Urumqi
Wanning
Weifang
Weihai
Weinan
Wenshan
Wenzhou
Wuhai
Wuhan
Wuhu
Wuwei
Wuxi
Wuyishan
Wuzhishan
Wuzhou
Xiamen
Xian
Xian'ning
Xiangfan
Xiangtan
Xianyang
Xiaogan
Xichang
Xilinhot
Xingyi
Xining
Xinxiang
Xinyu
Xinzhou
Xishuangbanna
Xitang
Xuchang
Xuzhou
Ya'an
Yancheng
Yandangshan
Yangjiang
Yangquan
Yangshuo
Yangzhou
Yanji
Yantai
Yibin
Yichang
Yichun
Yichun(Jiangxi)
Yinchuan
Yingkou
Yining
Yiwu
Yixing
Yiyang
Yongzhou
Yueqing
Yueyang
Yulin(Guangxi)
Yulin(Shaanxi)
Yuncheng
Yunfu
Zaozhuang
Zhangjiagang
Zhangjiajie
Zhangjiakou
Zhangzhou
Zhanjiang
Zhaoqing
Zhengzhou
Zhenjiang
Zhongshan
Zhongwei
Zhoukou
Zhoushan
Zhouzhuang
Zhuhai
Zhuji
Zhuzhou
Zibo
Zigong
Zunyi
| Home | Hotels | Hotels Video | China Flights | Flights Schedule | Pickup Service | Travel Packages | Affiliate | Add your hotels | Interprete Italiano-Cinese | Contact | Site Map | Link | FAQ | About Us
Copyright © 2001-2024 China Hotels Reservation - All Rights Reserved
Europe Office: ChinaHotelsReservation- Via Gerolamo Forni 64 - 20161 Milano - Fax 0291390522
China Office: China Travel(Hualv) Business co.,Ltd. - Tel 0086-577-88555070 Fax 0086-577-88522570
Xishan Donglu Xicen Gongyu 7 Zhuang 802 - 325005 Wenzhou China