Value-added tax is levied in three links, namely, selling goods, providing processing and repair services and importing goods. Details are as follows:

1, selling goods. The goods referred to refer to tangible movable property, including electricity, heat and gas. Commodity futures and precious metal futures are also subject to VAT. Real estate such as land and houses is not subject to value-added tax. The sale of goods refers to the paid transfer of ownership of goods, including obtaining money, goods or other economic benefits from the buyer. Commodity futures and precious metal futures

2. Provide processing and maintenance services. Processing refers to the entrusted processing of goods, that is, the entrusting party provides raw materials and main materials, and the entrusted party manufactures the goods according to the requirements of the entrusting party and collects processing fees;

3. Repair and replacement refers to the business of accepting the entrustment to repair the damaged and invalid goods to restore them to their original state and function.

Special items of VAT collection:

1, commodity futures (including commodity futures and precious metal futures); Commodity futures are subject to value-added tax, and taxes are paid at the time of physical delivery;

2. The business of selling gold and silver by banks;

3. The pawn business sells dead goods;

4. Consignment business sells goods consigned by customers;

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

Legal basis: Article 15 of the Provisional Regulations of People's Republic of China (PRC) on Value-added Tax.

The following items are exempt from value-added tax:

(1) Self-produced agricultural products sold by agricultural producers;

(2) Contraceptive drugs and devices;

(3) old books;

(4) Imported instruments and equipment directly used for scientific research, scientific experiments and teaching;

(5) Imported materials and equipment provided free of charge by foreign governments and international organizations;

(six) articles for the disabled directly imported by organizations for the disabled;

(7) selling articles for personal use.

In addition to the provisions of the preceding paragraph, the items of tax exemption and reduction of value-added tax shall be stipulated by the State Council. No region or department may stipulate tax exemption or reduction items.