However, if VAT is used for normal self-production, it may be necessary to pay VAT.
The collection scope of resource tax should include all state-owned resources developed and utilized. However, considering the lack of experience in levying resource tax in China, the scope of resource tax stipulated in Article 1 of the Provisional Regulations of People's Republic of China (PRC) only includes mineral products and salts with commodity attributes (i.e. value and use value).
Mineral products, including crude oil, natural gas, coal, metallic mineral products and other non-metallic mineral products.
Salt includes solid salt and liquid salt.
According to Article 7 of China's "Provisional Regulations on Resource Taxes", in any of the following circumstances, the resource tax is reduced or exempted: (1) The crude oil used for heating and workover during crude oil exploitation is exempt from tax.
(2) If taxpayers suffer heavy losses due to accidents or natural disasters in the process of mining or producing taxable products, the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall decide to reduce or exempt taxes as appropriate.
(three) other tax reduction and exemption items stipulated by the State Council.
In addition, it should also be noted that taxpayers' tax reduction and exemption items should be accounted for separately according to sales volume or sales quantity; If the sales amount or sales quantity is not separately accounted for or cannot be accurately provided, tax reduction or exemption shall not be allowed.