Value-added tax is a turnover tax based on the value-added amount of goods (including taxable services) generated in the circulation process. Value-added tax is a tax levied on the value-added of units and individuals who sell goods or provide processing, repair and replacement services and import goods.

Generally speaking, value-added tax is a kind of tax that the state increases the profits that exceed the cost when selling things to enterprises.

I. General scope of value-added tax

The scope of taxation of value-added tax includes the sale (including import) of goods and the provision of processing, repair and replacement services. [ 1]

Two. Special value-added tax item

Commodity futures (including commodity futures and precious metal futures); -Commodity futures are subject to value-added tax, which is paid in the physical delivery;

The business of selling gold and silver by banks;

Pawnshops sell dead goods;

Consignment business is the business of customers selling consignment goods;

Other units and individuals outside the postal department produce, distribute and sell philatelic products.

Third, the special behavior of value-added tax

Regarded as sales: The following eight acts are regarded as selling goods in the VAT Law, and all of them are subject to VAT.

1. Deliver the goods to others for consignment;

2. Selling goods on behalf of others;

3. Transferring goods from one place to another (except the same county and city);

4. Use the self-produced or entrusted goods for non-taxable items;

5, the production, commissioned processing or purchase of goods as an investment in other units;

6. Distribute the self-produced, commissioned or purchased goods to shareholders or investors;

7. Use the self-produced or entrusted goods for employee welfare or personal consumption;

8. Give the self-produced, commissioned or purchased goods to others free of charge;