Interim Value-Added Tax Regulations of the People's Republic of China (Revised in 2017)
Interim Value-Added Tax Regulations of the People's Republic of China (Revised in 2017)
Interim Value-Added Tax Regulations of the People's Republic of China (Revised in 2017)
Order of the State Council of the People's Republic of China No.691
November 19, 2017
(Published by the Order of the State Council of the People's Republic of China No.134 on December 13, 1993; revised and adopted at the 34th executive meeting of the State Council on November 5, 2008; revised for the first time in accordance with the Decision of the State Council on Revising Certain Administrative Regulations dated February 6, 2016; and revised for the second time in accordance with the Decision of the State Council on Repealing the Interim Regulations of the People's Republic of China on Business Tax and Revising the Interim Value-Added Tax Regulations of the People's Republic of China dated November 19, 2017)
Article 1 Entities and individuals selling goods, providing labor services of processing, repairs or maintenance (hereinafter referred to as the "labor services"), or selling services, intangible assets or real property in China, or importing goods to China, shall be identified as taxpayers of value-added tax, and shall pay value-added tax under these Regulations.
Article 2 Value-added tax rates:
1. Taxpayers that sell goods, labor services or tangible personal property leasing services or import goods and do not fall within the scope as specified in Item 2, Item 4 and Item 5 of this Article shall be subject to a 17% tax rate.
2. Taxpayers that sell transport services, postal services, basic telecommunications services, construction services, or real property leasing services, sell real property, transfer the land use right, or sell or import the goods listed below shall be subject to an 11% tax rate:
(1) Such agricultural products as grain, edible vegetable oil, and common salt;
(2) Tap water, heat supply, air-conditioning, hot water, gas, liquefied petroleum gas, natural gas, dimethyl ether, methane and civil-use coal products;
(3) Books, newspapers, magazines, audio-visual products, and electronic publications;
(4) Feeds, chemical fertilizers, pesticides, agricultural machineries and mulching films; and
(5) Other goods specified by the State Council.
3. Taxpayers that sell services or intangible assets and do not fall within the scope as specified in Item1, Item 2 and Item 5 of this Article shall be subject to a 6% tax rate.
4. Taxpayers who export goods are subject to a zero tax rate, unless otherwise specified by the State Council.
5. Domestic entities and individuals that sell services or intangible assets under the scope specified by the State Council across borders are subject to a zero tax rate.
Adjustments to the tax rates shall be decided by the State Council.
Article 3 Taxpayers concurrently engaging in trading items that are subject to VAT at different rates shall separately calculate the sales value of such items based on the applicable tax rates. Where the sales values are not calculated separately, the highest tax rate applies.
Article 4 Except in circumstances specified in Article 11 of these Regulations, taxpayers' liability for selling goods, labor services, services, intangible assets, or real property (hereinafter referred to as the "taxable sales activities") shall amount to the balance after deducting input tax from output tax in the current period.
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Order of the State Council of the People's Republic of China No.691
November 19, 2017
(Published by the Order of the State Council of the People's Republic of China No.134 on December 13, 1993; revised and adopted at the 34th executive meeting of the State Council on November 5, 2008; revised for the first time in accordance with the Decision of the State Council on Revising Certain Administrative Regulations dated February 6, 2016; and revised for the second time in accordance with the Decision of the State Council on Repealing the Interim Regulations of the People's Republic of China on Business Tax and Revising the Interim Value-Added Tax Regulations of the People's Republic of China dated November 19, 2017)
Article 1 Entities and individuals selling goods, providing labor services of processing, repairs or maintenance (hereinafter referred to as the "labor services"), or selling services, intangible assets or real property in China, or importing goods to China, shall be identified as taxpayers of value-added tax, and shall pay value-added tax under these Regulations.
Article 2 Value-added tax rates:
1. Taxpayers that sell goods, labor services or tangible personal property leasing services or import goods and do not fall within the scope as specified in Item 2, Item 4 and Item 5 of this Article shall be subject to a 17% tax rate.
2. Taxpayers that sell transport services, postal services, basic telecommunications services, construction services, or real property leasing services, sell real property, transfer the land use right, or sell or import the goods listed below shall be subject to an 11% tax rate:
(1) Such agricultural products as grain, edible vegetable oil, and common salt;
(2) Tap water, heat supply, air-conditioning, hot water, gas, liquefied petroleum gas, natural gas, dimethyl ether, methane and civil-use coal products;
(3) Books, newspapers, magazines, audio-visual products, and electronic publications;
(4) Feeds, chemical fertilizers, pesticides, agricultural machineries and mulching films; and
(5) Other goods specified by the State Council.
3. Taxpayers that sell services or intangible assets and do not fall within the scope as specified in Item1, Item 2 and Item 5 of this Article shall be subject to a 6% tax rate.
4. Taxpayers who export goods are subject to a zero tax rate, unless otherwise specified by the State Council.
5. Domestic entities and individuals that sell services or intangible assets under the scope specified by the State Council across borders are subject to a zero tax rate.
Adjustments to the tax rates shall be decided by the State Council.
Article 3 Taxpayers concurrently engaging in trading items that are subject to VAT at different rates shall separately calculate the sales value of such items based on the applicable tax rates. Where the sales values are not calculated separately, the highest tax rate applies.
Article 4 Except in circumstances specified in Article 11 of these Regulations, taxpayers' liability for selling goods, labor services, services, intangible assets, or real property (hereinafter referred to as the "taxable sales activities") shall amount to the balance after deducting input tax from output tax in the current period.
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