Currently, domestic futures are all commodity futures. The profit and loss from closing positions and position profits and losses obtained by units and individuals engaged in futures trading shall be calculated and paid VAT in accordance with regulations.

The formula for calculating the VAT payable on profit and loss from closing a position and profit and loss from a holding position is:

VAT payable (refundable) = tax-exclusive profit and loss from closing a position (holding) × VAT Tax rate

Tax-free profit and loss from closing (position) = profit and loss from closing (position) ÷ (1 + VAT rate)