The scope of VAT payment is 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; Repair and replacement refers to the business of repairing damaged or invalid goods to restore them to their original state and function.

The tax basis of VAT is as follows:

1. If the deposit collected by taxpayers for renting or lending packages for the purpose of selling goods is accounted for separately, it will not be incorporated into business tax. However, for the deposit that has not been returned due to overdue recovery of the packaging materials, VAT shall be levied according to the applicable tax rate of the packaging materials;

Taxpayers sell goods at a discount. If the sales amount and discount amount are indicated separately on the same invoice, the value-added tax can be levied according to the discounted sales amount; If the discount amount is invoiced separately, the discount amount shall not be deducted from the sales amount regardless of the financial treatment;

3. Taxpayers selling goods in the form of trade-in should determine the sales amount according to the sales price of new products in the same period. Taxpayers selling goods by repayment of principal shall not deduct the amount of principal from the sales;

4. 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%.

To sum up, VAT is usually paid by the seller, but usually borne by the buyer.

Legal basis:

Article 1 of the Provisional Regulations of People's Republic of China (PRC) Municipality on Value-added Tax

Units and individuals that sell goods or provide processing, repair and replacement services and import goods within the territory of People's Republic of China (PRC) are taxpayers of value-added tax and shall pay value-added tax in accordance with these regulations.