Do enterprises have to pay VAT or business tax when selling patents?

According to the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on the Pilot Tax Policy of Changing Business Tax to Value-added Tax in Transportation Industry and Some Modern Service Industries in China? Annex 2 of Caishui (2013) No.37 stipulates that modern service industry -R&D and technical service-technology transfer service refer to the business activities of transferring the ownership or use right of patented or non-patented technology.

Therefore, enterprises have to pay VAT when selling patents. The general taxpayer's VAT rate is 6% and the small-scale taxpayer's VAT rate is 3%.