Simplified collection rates for general taxpayers: 17, 13; small-scale taxpayers: 6 or 4; for exported goods, zero tax rate applies
For general VAT taxpayers engaging in taxable activities , except for the following low taxes, tax exemptions, etc., the basic tax rate of 17% is always applicable. For special goods such as tobacco, alcohol, and luxury goods, the tax burden will be adjusted by adding consumption tax.
Low tax rate
In order to reduce the tax burden of certain industries, in addition to the basic tax rate, another low tax rate of 13% is provided. The goods applicable to the low tax rate are: agricultural products ; Heating, air conditioning, hot water, coal gas, liquefied petroleum gas, natural gas, biogas, coal products for residential use; books, newspapers, magazines; feed, fertilizers, pesticides, agricultural machinery (excluding agricultural machinery parts) agricultural films; metals and non-metals Mineral processing products and other goods specified by the State Council. General VAT taxpayers who sell or import the above goods are levied VAT at a low rate of 13%.
Collection rate
The applicable collection rate for small-scale taxpayers is 4% for commercial small-scale taxpayers; for industrial small-scale taxpayers, the applicable collection rate is 4%. The rate is 6%, and no input tax can be deducted.
In addition, according to the "Notice on Value-Added Tax Policies for Used Goods and Used Motor Vehicles" issued by the Ministry of Finance and Taxation [2002] No. 29, starting from January 1, 2002, taxpayers (whether they are VAT General taxpayers or small-scale taxpayers) who sell used goods shall calculate the tax at a 4% tax rate and then levy the value-added tax at a half rate, and the input tax shall not be deducted. If a taxpayer sells his or her used motor vehicles, motorcycles, or yachts that are subject to consumption tax, and the selling price exceeds the original value, the tax amount will be calculated based on a 4% collection rate, and then the value-added tax will be halved; if the selling price does not exceed the original value, the value-added tax will be levied. Exempt from VAT. When a used motor vehicle business unit sells used motor vehicles, motorcycles, or yachts, the value-added tax will be levied after calculating the tax amount at a 4% collection rate and then reducing it by half.
For tap water sold by water companies, the value-added tax is also levied at a 6% tax rate according to the "Notice on Value-Added Tax Policy Issues in the Tap Water Industry" issued by the State Administration of Taxation on May 17, 2002, Guoshuifa [2002] No. 56 However, the VAT stated on the special VAT invoice obtained for the tap water purchased from the water plant can be deducted.
The crude oil and natural gas extracted from Sino-foreign cooperative oil (gas) fields shall be subject to value-added tax, consumption tax, business tax, etc. "Notice on Issues Related to the Interim Regulations on Taxation" levies value-added tax at a collection rate of 5%.
Tax reduction and exemption
Article 16 of the "Interim Regulations of the People's Republic of China on Value-Added Tax" stipulates that the following eight items are exempt from value-added tax:
Self-produced agricultural products sold by agricultural producers
Contraceptives and appliances
Old books
Imported instruments directly used for scientific research, scientific experiments and teaching , equipment
Imported materials and equipment provided with free assistance from foreign governments and international organizations
Imported equipment required for processing of supplied materials, assembly of supplied parts and compensation trade
Items for use by persons with disabilities directly imported by organizations of persons with disabilities
Items used by oneself for sale
In addition, value-added tax will also be exempted if the threshold is not reached. The right to reduce or reduce VAT lies with the State Council. No region or department has the right to reduce or reduce VAT. However, each provincial-level tax bureau can determine the applicable threshold based on local actual conditions within the specified range.
In addition to the above statutory tax exemptions, with the approval of the State Council, the Ministry of Finance, the State Administration of Taxation and other ministries and commissions have successively issued documents stipulating some new exemptions and exemptions, including:
Infrastructure units and those engaged in construction and installation Processing plants and workshops attached to business enterprises, and prefabricated components manufactured at the construction site that are directly used in the construction projects of the unit or the enterprise are not subject to value-added tax
Sales of films that occur due to the transfer of copyrights No value-added tax is levied on the business of master films, video tape masters, audio tape masters, and the business of selling computer software due to the transfer of ownership of patented technology and non-patented technology
Registered by the National Copyright Administration For registered computer software products, if the copyright and ownership are transferred together with the sale, business tax will be levied and no value-added tax will be levied
Supply or exploit unprocessed natural water, such as reservoirs supplying agricultural irrigation water, and factories supplying water for their own use. No value-added tax will be levied on the extraction of groundwater for production
No value-added tax will be levied on the revenue from the sales of telephone directories to the telecommunications department and its affiliated telephone directory companies
Sales to the military Military supplies for the military and police are exempt from value-added tax
Steel, wood, cement, boilers and other goods produced by enterprises affiliated to the military and armed police systems and allocated or sold within the system are exempt from value-added tax
Special equipment, instruments and spare parts imported by the military, armed police and military industry units with the approval of the General Logistics Department and the Commission of Science, Technology and Industry for National Defense are exempt from import value-added tax
For the military, armed police and public security Police dogs imported by departments are exempt from import value-added tax
Processing and repair and repair services provided by disabled people are exempt from value-added tax
p>Imported items for disabled people are exempt from import value-added tax
Building materials products produced from waste residue are exempt from value-added tax
China Book Import and Export Corporation sells to scientific research Imported scientific research and teaching books and periodicals from institutions and colleges and universities are exempt from value-added tax
Rural power grid maintenance fees collected by rural power management stations are exempt from value-added tax
Agricultural film, seeds, Agricultural production materials such as seedlings, fertilizers, pesticides, and agricultural machinery are exempted from value-added tax
Fertilizers and pesticides imported within the national plan are exempted from import value-added tax
For those responsible for purchasing and storage The sales of grain by state-owned grain enterprises with missions, and the sales by other grain enterprises of military grain, disaster relief grain, reservoir resettlement grain, and government reserve edible vegetable oil are exempt from value-added tax
Clinical use supplied by blood stations to medical institutions Blood is exempt from VAT
Preparations produced and used by non-profit medical institutions are exempt from VAT; preparations produced and used by for-profit medical institutions are exempted from VAT for 3 years
Gold allocated by the People's Bank of China at international market prices is exempt from value-added tax
Gold produced and sold by gold production and sales units (excluding fineness AU9999, AU9995, AU999, AU995; specifications: 50 grams, 100 Gram, 1 kilogram, 3 kilogram, 12.5 kilograms of standard gold) and gold ore (including associated gold) are exempt from value-added tax
Member units of the gold exchange sell standard gold through the gold exchange, and no physical goods are incurred The delivery is exempt from VAT; in the case of physical delivery, the tax authorities will issue special VAT invoices based on the actual transaction price, and implement the policy of refunding VAT as soon as it is collected. At the same time, urban maintenance and construction tax and education surcharge will be exempted.
Imported gold (including standard gold) and gold ore (including associated minerals) are exempt from import value-added tax
Diamonds traded in the Shanghai Diamond Exchange are exempt from value-added tax. Diamonds sold to the domestic market are not included in the tax exemption
For imported diamonds that directly enter the Shanghai Diamond Exchange, no value-added tax is levied at the import stage
The logistics entity of universities is the university teacher The grain, edible vegetable oil, vegetables, meat, poultry, eggs, condiments and canteen tableware provided by the raw canteen are exempt from value-added tax
The export income of fast food provided by university logistics entities to other universities is exempt from value-added tax Tax
Products produced by school-run enterprises and used for teaching and scientific research of the school
All taxable products (excluding consumption tax taxable products) are exempt from value-added tax
Four asset management companies and their branches established with the approval of the State Council, including China Cinda, Huarong, Great Wall and Oriental , if the borrower accepts non-performing claims from relevant state-owned banks, and the borrower uses goods, real estate, intangible assets, securities, and bills to offset the principal and interest of the loan, the asset company is exempt from the sales and transfer of the goods, real estate, intangible assets, securities, bills, etc. And the value-added tax that should be paid when using the goods and real estate to engage in financial leasing business
The business of repairing trucks for the system by internal units of the railway system is exempt from value-added tax
Recycling operations of waste and old materials Units selling waste and used materials purchased by them are exempt from value-added tax
Goods purchased domestically with free assistance from foreign governments and international organizations are exempt from value-added tax
Transportation by embassies and consulates in China Imported official supplies, items for personal use brought in by diplomatic representatives, and household items brought in by administrative and technical staff of embassies and consulates within six months of their arrival are exempt from import value-added tax
COSCO Group’s ship repair business is exempted from import value-added tax Value-added tax
Sports equipment and competition-specific clothing imported by national professional sports teams or donated or sponsored by international organizations and foreign countries are exempt from import value-added tax
For the Organizing Committee of the 29th Olympic Games Income from the resale of donated items and the transfer of assets after the games are exempt from value-added tax
Imported materials donated free of charge by foreign governments and international organizations for the 29th Olympic Games are exempt from import value-added tax and tariffs
On non-trade documents, books, audio and video related to the 29th Olympic Games that are imported by mail from abroad and do not flow into the domestic market by the International Olympic Committee, international individual sports organizations and other social groups. , CD-ROMs, within a reasonable quantity, are exempt from import value-added tax and tariffs. Non-trade planning and design plans such as models, drawings, drawing boards, electronic document CDs, design instructions and miniatures required for the construction of Olympic venues are exempt from import value-added tax and tariffs
For general Imported by trade, equipment required for the construction of stadiums for the 29th Olympic Games that is fixed and inseparable from the stadium facilities and consumables directly used for Olympic competitions (such as competition balls, etc.) are exempt from the import value-added process. Taxes and customs duties
Regarding the income obtained by the International Olympic Committee from within China and related to the 29th Olympic Games, as well as the compensation income paid by the Chinese Olympic Committee by the organizing committee in accordance with relevant agreements and contracts. and revenue sharing, and are exempt from relevant taxes
The sleepers and cement prefabricated components processed and produced by the processing and production enterprises that win the bid for the construction of the Qinghai-Tibet Railway are exempt from value-added tax
Auctions organized by the government or Income from sales of SARS donated materials by designated institutions is exempt from value-added tax
Disaster relief materials such as food, medicine, daily necessities, and rescue tools donated to China by foreign groups, enterprises, and individuals are exempt from import value-added tax
The value-added tax on urea products produced and sold by domestic enterprises has been adjusted from levied first and then refunded 50% to temporarily exempt from levying value-added tax
For goods imported through mutual trade by border residents in border areas, each person per person If the daily value is less than RMB 1,000, they are exempt from import value-added tax
Self-caught aquatic products and their processed products caught on the high seas or foreign waters by fishing vessels of distant-water fishery enterprises and transported back to the country for sale are exempt from import value-added tax. Import value-added tax
For airlines directly under the Civil Aviation Administration of China and local airlines importing aircraft (including leased aircraft) during the "Ninth Five-Year Plan" period, the import value-added tax is temporarily reduced to 6%
Value-added tax is halved for electricity produced from coal ore, cinder, kerogen shale and wind power, as well as some new wall material products listed by the state
The above listed are only some of the exemptions and not all.