Interim Regulations of the People's Republic of China on Value-added Tax
Interim Regulations of the People's Republic of China on Value-added Tax
Interim Regulations of the People's Republic of China on Value-added Tax
Order of the State Council [1993] No. 134
December 13, 1993
Article 1 All units and individuals engaged in the sales of goods, provision of processing, repairs and replacement services, and the importation of goods within the territory of the People's Republic of China are taxpayers of value added tax (hereinafter referred to as "taxpayers"), and shall pay VAT in accordance with these Regulations.
Article 2 VAT rates:
1. For taxpayers selling or importing goods, other than those stipulated in items (2) and (3) of this Article, the tax rate shall be 17%.
2. For taxpayers selling or importing the following goods, the tax rate shall be 13%:
(1) Food grains, edible vegetable oils;
(2) Tap water, heating, air conditioning, hot water, coal gas, liquefied petroleum gas, natural gas, methane gas, coal and charcoal products for household use;
(3) Books, newspapers, magazines;
(4) Feed, chemical fertilizers, agricultural chemicals, agricultural machinery and covering plastic film for farming;
(5) Other goods as stipulated by the State Council.
3. For taxpayers exporting goods, the tax rate shall be 0%, unless otherwise stipulated by the State Council.
4. For taxpayers providing processing, repairs and replacement services (hereinafter referred to as the "taxable services"), the tax rate shall be 17%.
Any adjustments to the tax rates shall be determined by the State Council.
Article 3 For taxpayers dealing in goods or providing taxable services with different tax rates, the sales amounts for goods or taxable services with different tax rates shall be accounted for separately. If the sales amounts have not been accounted for separately, the higher tax rate shall be applied.
Article 4 Except as stipulated in Article 13 of these Regulations, for taxpayers engaged in the sales of goods or the provision of taxable services (hereinafter referred to as the "selling goods or taxable services"), the tax payable shall be the balance of output tax for the period after deducting the input tax for the period. The formula for computing the tax payable is as follows:
Tax payable = Output tax for the period - Input tax for the period
If the output tax for the period is less than the input tax for the period and insufficient to offset against the input tax for the period, the input tax in excess can be carried forward for offsetting in the period that follows.
Article 5 For taxpayers selling goods or taxable services, the output tax shall be the VAT payable calculated based on the sales amounts and the tax rates prescribed in Article 2 of these Regulations and received from the purchasers.
The formula for computing the output tax is as follows:
Output tax = Sales amount x Tax rate
Article 6 The sales amount shall be the total consideration and all other charges receivable from the purchasers by the taxpayer selling goods or taxable services, but excluding the output tax receivable.
The sales amount shall be computed in Renminbi.
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