Do I have to pay VAT on the income funded by the National Arts Foundation?
No payment. According to the provisions of the national tax exemption system, the income of the reformed art fund is inquired. In order to prosper artistic creation, cultivate artistic talents, create and popularize masterpieces, and promote the healthy development of artistic undertakings, the central and local governments at all levels set up public welfare art funds to subsidize artistic production and talent training. However, at present, the local tax authorities do not have a unified system to stipulate whether the income from such subsidies should be taxed. The tax authorities in some areas have determined that the purchase of performance services needs to pay VAT. In some areas, the tax authorities have determined that it is a financial subsidy rather than a government purchase of services, and there is no need to pay taxes.