Loan interest is calculated according to the VAT rate of 6%.

The scope of VAT includes: sales and import of goods, provision of processing and repair services. The goods here refer to tangible movable property, including electricity, heat, gas, etc., excluding real estate. Processing refers to the business of entrusting the processing of goods, that is, the entrusting party provides raw materials and main materials, and the entrusting party manufactures the goods according to the entrusting party's requirements and collects processing fees; repair and repair refers to the entrustment to repair damaged and loss-of-function goods to restore them. Business in its original condition and functionality.

In addition, the following activities are regarded as sales of goods and are subject to VAT.

Selling goods to others for sale

Selling goods on behalf of others

Moving goods from one place to another (except in the same county or city)

Use self-produced or commissioned-processed goods for non-taxable projects

Use self-produced, commissioned-processed or purchased goods as investments in other units

Use self-produced or commissioned-processed goods for non-taxable projects Distribute goods produced, entrusted for processing or purchased to shareholders or investors

Use self-produced, entrusted processing or purchased goods for employee welfare or personal consumption

Use self-produced, entrusted processing or purchased goods The purchased goods are given to others free of charge

In China, the scope of VAT collection and the scope of business tax collection do not overlap with each other. If VAT is levied, business tax will not be levied, and if business tax is levied, VAT will not be levied. However, in actual economic activities, there are taxable behaviors of taxpayers operating concurrently or mixed operations.

If a sales activity involves both VAT taxable goods and business tax taxable services, it is regarded as a mixed sales activity. For example, a taxpayer sells goods and is responsible for transportation, and the sale of goods is subject to VAT. The scope of collection, transportation is the scope of business tax collection. The tax treatment method for this is that taxpayers whose main business is the production, wholesale or retail of goods (referring to taxpayers whose annual sales of goods account for more than 50% of their total turnover) will all be deemed to be selling goods and levied value-added tax. , no business tax is levied; other taxpayers who are not engaged in the production, wholesale or retail of goods are all regarded as taxable services under business tax and no longer levied value-added tax.

Different from mixed sales behavior, concurrent operation behavior means that the taxpayer engages in business tax taxable behavior while engaging in value-added tax taxable behavior, and there is no direct connection or affiliation between the two. relation. The tax treatment method for this is to require taxpayers to calculate the two separately and pay tax separately. If they cannot calculate separately or the separate calculation is inaccurate, all VAT will be levied.

Other special VAT taxable scopes include: physical delivery of goods futures, sales of dead pawns, production and sales of philatelic goods by non-postal departments (postal departments pay business tax for the production and sale of philatelic goods), etc. .

Legal Basis

"Notice of the Ministry of Finance and the State Administration of Taxation on Comprehensively Launching the Pilot Program of Replacing Business Tax with Value-Added Tax" (Finance and Taxation [2016] No. 36):

Article 15 Value-added tax rate:

(1) When a taxpayer engages in taxable behavior, except for the provisions of items (2), (3) and (4) of this article, the tax rate is: 6%.

(2) Providing transportation, postal service, basic telecommunications, construction, real estate leasing services, selling real estate, and transferring land use rights, the tax rate is 11%.

(3 ) provides leasing services for tangible personal property, with a tax rate of 17%.