Circular of Ministry of Finance and State Administration of Taxation on Several Issues Relevant to Nationwide Implementation of Transformation Reform of Value-added Tax
Circular of Ministry of Finance and State Administration of Taxation on Several Issues Relevant to Nationwide Implementation of Transformation Reform of Value-added Tax
Circular of Ministry of Finance and State Administration of Taxation on Several Issues Relevant to Nationwide Implementation of Transformation Reform of Value-added Tax
Cai Shui [2008] No. 170
December 19, 2008
All provinces, autonomous regions, municipalities directly under the central government, cities specifically designated in the state plan, State Administration of Taxation, Finance Bureau of Xinjian Production and Construction Corps,
To facilitate the improvement of the value-added tax (VAT) system and promote the steady and speedier development of national economy, the State Council has decided to implement VAT transformation reform nationwide with effect from January 1, 2009. To ensure the implementation of reform is in place, the relevant issues are hereby notified as follows:
I. With effect from January 1, 2009, the purchase tax incurred by general taxpayers of VAT (hereinafter referred as to "taxpayers") for purchase (including accepting donation and investment in kind, hereinafter the same) or production of (including extension and installation, hereinafter the same) fixed assets (hereinafter referred to as "purchase tax on fixed assets" may be offset and deducted from output tax on the strength of VAT special invoice, customs import VAT special demand of payment and delivery charge settlement receipt (hereinafter referred to as "VAT deduction receipts") in accordance with the Interim Regulations of the People's Republic of China on Value-added Tax (State Council Decree No. 538, hereinafter "Regulations") and the Implementing Rules for the Interim Regulations of the People's Republic of China on Value-added Tax (Decree of Ministry of Finance and State Administration of Taxation No. 50, hereinafter "Implementing Rules"), and the purchase tax shall be put under the subject of "payable tax-payable value-added tax (purchase tax)".
II.
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