Special tax basis for VAT:
1. Taxpayers engaged in tax exemption or reduction projects shall separately account for the sales of tax exemption or reduction projects; If the sales volume is not accounted for separately, no tax reduction or exemption shall be allowed. (Basis: Article 16 of the Provisional Regulations on Value-added Tax in People's Republic of China (PRC) (Revised Edition 20 17)) (the State Council Decree No.691)
2. If mixed sales are subject to VAT in accordance with Article 5 of these Rules, the sales amount shall be the sum of the sales of goods and the turnover of non-value-added taxable services. (Basis: Article 13 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-added Tax (Order No.50 of People's Republic of China (PRC) Ministry of Finance and State Taxation Administration of The People's Republic of China, 2008))
3. If taxpayers invest in raw materials and products overseas, the sales revenue shall be determined according to the amount of investment. (Basis: Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Several Issues Concerning Value-added Tax (Guo Shui Fa [1993] No.23), annex, Administrative Measures for Value-added Tax Calculation? "Article 1)
4. Taxpayers who deduct taxable products and sell products by barter shall calculate the sales income according to the market price of similar materials and products sold by taxpayers. (Basis: Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Several Issues Concerning Value-added Tax (Guo Shui Fa [1993] No.23), annex, Administrative Measures for Value-added Tax Calculation? "Article 1)
5. Taxpayers selling goods in the form of trade-in should determine the sales amount according to the sales price of new goods in the same period. (Basis: Article 2 of the Notice of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China on Printing and Distributing (Guo Shui Fa [1993] 154))
6. Taxpayers selling goods by repayment of principal shall not deduct the amount of principal from the sales. (Basis: Article 2 of the Notice of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China on Printing and Distributing (Guo Shui Fa [1993] 154))
7. The deposit collected by taxpayers for selling goods for lease or loan of packaging shall be accounted for separately and shall not be incorporated into business tax. However, for the deposit that has not been refunded due to overdue recovery and packaging, VAT shall be levied according to the applicable tax rate of the packaged goods. (Basis: Article 2 of the Notice of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China on Printing and Distributing (Guo Shui Fa [1993] 154))
8. Taxpayers sell goods at a discount. If the sales amount and discount amount are indicated separately on the same invoice, VAT can be levied according to the discounted sales amount; If the discount amount is invoiced separately, it shall not be deducted from the sales amount regardless of the financial treatment. (Basis: Article 2 of the Notice of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China on Printing and Distributing (Guo Shui Fa [1993] 154))
9. If the taxpayer needs to form taxable value to determine the sales amount because the sales price is obviously low or there is no sales price, the cost profit rate in the group price formula is 10%. However, for goods that should be subject to consumption tax at a fixed price rate, the cost profit rate in the group price formula is the cost profit rate stipulated in the Provisions on Certain Specific Issues of Consumption Tax. (Basis: Article 2 of the Notice of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China on Printing and Distributing (Guo Shui Fa [1993] 154))
10. The crude oil and natural gas mined in the cooperative oil (gas) field are subject to value-added tax in kind, and the output of crude oil and natural gas after deducting the oil (gas) consumption and loss of petroleum operation is the tax basis. (Basis: Article 1 of the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Issues Concerning the Payment of Value-added Tax in Sino-foreign Cooperative Exploitation of Petroleum Resources (Guo Shui Fa [1994]14))
1 1. The tax basis of value-added tax on commodity futures trading is the price excluding tax at the time of delivery (excluding the actual turnover of value-added tax). (Basis: Article 2 of the Notice of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China on Printing and Distributing (Guo Shui Fa [1994] No.244))
12. The tax refund (exemption) for export goods and services is based on export invoices (export invoices) for export goods and services, other ordinary invoices or special invoices for value-added tax for purchasing export goods and services, and special payment letters for customs import value-added tax. (Basis: Article 4 of the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on the Policies of Value-added Tax and Consumption Tax on Exported Goods and Services (Caishui [2012] No.39))
13. The sales of China Securities Depository and Clearing Co., Ltd. do not include the following capital items: the securities settlement risk fund withdrawn according to regulations; The securities company that collects and pays on behalf of the securities company settles the breach of contract and advances the interest on the funds; Penalty interest for the settlement of funds collected and paid on behalf of others in the settlement process. (Basis: Article 2 of the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Several Policies for the Pilot Reform of Business Tax to VAT (Caishui [2016] No.39))
14. China Mobile Communications Group Co., Ltd., China United Network Communications Group Co., Ltd., China Telecom Group Co., Ltd. and their member units accept donations from non-profit organizations by SMS (see Annex 1 for the list). The sales amount is the total price and out-of-price expenses obtained by them, and the donations paid to non-profit organizations are deducted. The donations it accepts shall not issue special VAT invoices. (Basis: Article 1 of the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Several Policies for the Pilot Reform of Business Tax to VAT (Caishui [2016] No.39))
15. According to the current regulations, small-scale VAT taxpayers who implement the VAT difference collection policy can determine whether they can enjoy the VAT exemption policy of less than 30,000 yuan (quarterly tax payment of 90,000 yuan) according to the sales before the difference collection. (Basis: Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Several Issues Concerning the Clear Collection and Management of the Pilot Project of Business Reform (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.26, 20 16))
16. Taxpayers provide human resources outsourcing services and pay VAT according to brokerage services. Sales do not include wages paid to employees on behalf of client units and social insurance and housing accumulation fund paid by agents. (Basis: Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance on Further Defining and Comprehensively Pushing Forward the Policy of Labor Dispatch Service and Toll Deduction of Pilot Toll Roads for Changing Business Tax to VAT (Cai Shui [2016] No.47? ))
17. When a taxpayer transfers the land use right acquired before April 30, 20 16, he can choose to apply the simple tax calculation method, and the balance of the total price obtained after deducting the original price of the land use right and other expenses is the sales amount. (Basis: Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance on Further Defining and Comprehensively Pushing Forward the Policy of Labor Dispatch Service and Toll Deduction of Pilot Toll Roads for Changing Business Tax to VAT (Cai Shui [2016] No.47? ))
18. If the bank provides loan services and collects interest on schedule, all the interest income collected on the interest settlement date will be included in the current sales on the interest settlement date, and the value-added tax will be calculated and paid according to the current regulations. (Basis: Announcement of State Taxation Administration of The People's Republic of China on Several Issues Concerning the Collection and Management of the Pilot Project of the Reform of Business Tax (State Taxation Administration of The People's Republic of China Announcement No.53, 20 16))
19. Taxpayers provide property management services, and the sales amount is the tap water fee charged to the service recipient. After deducting the tap water fee paid by them, they pay VAT at the rate of 3% according to the simple tax calculation method. (Basis: Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Collecting Tap Water Value-added Tax for Property Management Services (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.2016 No.54))
20. Taxpayers import goods exempted from import value-added tax according to regulations, and their sales amount does not include the payment received from the entrusting party and paid on its behalf. (Basis: Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Providing Foreign Construction Services (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.2016 No.69))
2 1. Overseas units conduct examinations in China through the Examination Center of the Ministry of Education and its directly affiliated units, and the balance of the examination fees obtained by the Examination Center of the Ministry of Education and its directly affiliated units after deducting the examination fees paid to overseas units shall be regarded as sales. (Basis: Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Providing Foreign Construction Services (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.2016 No.69))
22. Taxpayers provide visa agency services, after deducting the visa fees and certification fees charged to the clients and paying them to the Ministry of Foreign Affairs and foreign embassies (consulates) in China, the balance is sales. (Basis: Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Providing Foreign Construction Services (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.2016 No.69))
In practice, it is difficult to accurately calculate the added value or additional value of commodities in the process of production and circulation.
Therefore, China also adopts the method of tax deduction, which is a widely used method in the world.
That is, according to the sales of goods or services, the sales tax is calculated at the prescribed tax rate, and then the value-added tax paid when obtaining goods or services is deducted, that is, the input tax, and the difference is the taxable amount of the value-added part. This calculation method embodies the principle of taxation according to value-added factors.
The collection of value-added tax usually includes all links in the production, circulation or consumption process. It is a neutral tax based on value-added or price difference. Theoretically, it includes all agricultural industries (planting, forestry and animal husbandry), mining, manufacturing, construction, transportation and commercial services. Or all links of raw material procurement, manufacturing, wholesale, retail and consumption.
Sales tax belongs to regressive tax, which is an indirect tax based on the value-added of goods or services. It is called Goods and Services Tax (GST) in Australia, Canada, New Zealand and Singapore, and consumption tax in Japan.
Value-added tax was invented by French economist Maurice Laurie in 1954, and 45% of the French government's income comes from value-added tax.
References:
Baidu Encyclopedia-VAT