According to Article 5 of the Provisional Regulations on Value-added Tax in People's Republic of China (PRC), if a taxpayer makes taxable sales, the value-added tax levied shall be calculated according to the sales amount and the tax rate stipulated in Article 2 of these regulations, which is the output tax. Output tax calculation formula: output tax = sales amount × tax rate.
Article 6 Sales amount refers to the total price and other expenses collected by taxpayers in taxable sales activities, but does not include the output tax collected. Sales are calculated in RMB. Taxpayers who settle their sales in currencies other than RMB shall convert them into RMB for settlement.
Article 7 If the taxable sales price of taxpayers is obviously low without justifiable reasons, the sales amount shall be verified by the competent tax authorities.
Extended data:
The "Provisional Regulations on Value-added Tax in People's Republic of China (PRC)" Article 15 The following items shall be exempted 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.
Baidu Encyclopedia-Provisional Regulations on Value-added Tax in People's Republic of China (PRC)