Circular of the General Administration of Taxation on Several Issues Concerning Consumption Tax

Circular of the General Administration of Taxation on Several Issues Concerning Consumption Tax

Guo Shui Fa [1997] No. 84

May 21, 1997

Offices of State Administration of Taxation in each province, autonomous region, municipality directly under the central government and municipality with independent planning status:

Recently, offices of State Administration of Taxation in different regions have encountered several problems in succession during enforcing the consumption tax policies, and requested the State Administration of Taxation to give clarification. Based upon the opinions discussed in the forum for consumption tax issues in some regions, we hereby notify the detailed levy issues as follows:

I. Issues concerning the conversion of sales amount excluding value added tax in normal invoice
After the methods for calculation of taxable consumer goods deducted with paid tax and manufactured successively by taxpayers from 8 purchased after-tax taxable consumer goods including tobacco shred are uniformed, if the enterprises issue common invoices for the purchased after-tax consumer goods, when they are converted into sales (excluding value added tax), it shall be converted at the rate of 6% uniformly.
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