Contents
Chapter i general provisions
Chapter ii tax rates
Chapter iii taxable amounts
Chapter iv tax incentives
Chapter v administration of expropriation
Chapter vi
Chapter i general provisions
In order to improve the vat system for high-quality development, to regulate the collection and payment of vat, to protect the legitimate interests of taxpayers and to enact the act。
Article ii. Vat taxation should follow through on party and national route policy, decision-making deployment and service to national economic and social development。
Thirdly, in the territory of the people's republic of china (hereinafter referred to as " the people's republic of china " ), the sale of goods, services, intangible assets, immovable property (hereinafter referred to as taxable transactions), as well as the import of goods, units and individuals (including individual business owners) shall be subject to vat in accordance with the provisions of this law。
Sale of goods, services, intangible assets, immovable property means a paid transfer of ownership of the goods, immovable property, a paid provision of services and a paid transfer of ownership or use of intangible assets。
Article 4. Taxable transactions occurring within the territory are:
(i) the place of departure or location of the sale of the goods
(ii) in the case of sale or lease of immovable property, transfer of the right of use of natural resources, the place in which the immovable property or natural resources are located
(iii) if the financial goods are sold, the financial goods are issued within the national territory or the seller is a domestic unit or individual
(d) in addition to the provisions of paragraphs 2 and 3 of this article, the sale of services, intangible assets, services, intangible assets are consumed in its territory, or the seller is a domestic unit or individual。
Article 5 vat shall be paid in accordance with the provisions of this law if the transaction is considered to be taxable:
(i) the use of goods produced or commissioned for collective welfare or personal consumption by individual businesses and businesses
(ii) the transfer of goods without charge by units and individual businesses
(iii) the transfer of intangible assets, real estate or financial commodities by units and individuals without charge。
Article vi. Vat shall not be levied if the following are not taxable transactions:
(i) the employee provides services to the employer or employer to obtain wages or salaries
(ii) collection of administrative fees, government funds
(iii) compensation for expropriation or expropriation in accordance with the law
(iv) obtaining interest income on deposits。
Article 7. Value added tax (vat) is an extra-value tax, and vat is not included in sales of taxable transactions. Value-added tax (vat) amounts should be separately stated in the certificates of transactions in accordance with the requirements of the state council。
Article 8. Taxpayers who engage in taxable transactions shall calculate their value-added tax (vat) in accordance with the general tax method, by deducting the amount of the tax to which they are taxed, except as otherwise provided in this law。
Small taxpayers can calculate vat payments on the basis of a simple tax method for calculating taxable amounts based on sales and collection rates。
The method of taxing the value-added tax on marine oil and natural gas, etc., is implemented in accordance with the relevant provisions of the state council。
Article 9. Small taxpayers under this act are taxpayers whose annual vat sales do not exceed $5 million。
Where small taxpayers have sound accounting and are able to provide accurate tax information, they may register with the competent tax authorities for the calculation of vat in accordance with the general tax methodology established by this act。
Depending on the needs of national economic and social development, the state council may adjust the criteria for small taxpayers for submission to the standing committee of the national people's congress。
Chapter ii tax rates
Article x value added tax rates:
(i) a taxpayer who sells goods, processes repair and repair services, leases tangible movable property and imports goods at a rate of 13 per cent, except as provided for in paragraphs 2, 4 and 5 of this article。
(b) a taxpayer who sells transport, postal, basic telecommunications, construction, real estate rental services, sells immovable property, transfers land use rights, sells or imports goods other than those provided for in paragraphs 4 and 5 of this article at a rate of 9 per cent:
1. Agricultural products, edible vegetable oils, edible salt
2. Water, heating, cooling, hot water, gas, petroleum liquefied gas, natural gas, diether, biogas, residential coal products
3. Books, newspapers, magazines, audio-visual products, electronic publications
4. Feeds, fertilizers, pesticides, agricultural machinery, membranes。
(c) the tax rate for the sale of a taxpayer's services and intangible assets shall be six per cent, except as provided for in paragraphs 1, 2 and 5 of this article。
(iv) the taxpayer exports goods at a zero rate unless otherwise provided by the state council。
(v) cross-border sale of services, intangible assets within the scope of the department of state for domestic units and individuals, at zero rates。
Article 11 the application of the simple tax method to calculate the rate of collection of vat is 3 per cent。
If more than two taxable transactions occur between taxpayers involving different rates of taxation and collection, the sales amount of the different rates of collection shall be accounted for separately; if not separately, the tax rate shall be higher。
Article 13 if a taxable transaction takes place between two or more tax rates and collection rates, the tax rates and collection rates apply according to the principal operations of the taxable transaction。
Chapter iii taxable amounts
Where vat is paid in accordance with the general tax methodology, the amount of tax payable is the amount of the current tax deductions offset by the amount of the current tax advance。
Where vat payments are calculated on the basis of a simple tax calculation, the amount of tax payable is the current sales multiplied by the collection rate。
Imported goods are subject to vat at tax rates multiplied by the applicable tax rates, in accordance with the composition of the law. The formation of tax-paying prices plus customs duties and excise taxes for tariff-paying prices; as otherwise provided by the state council, they are determined by it。
Article 15. Taxable transactions between offshore units and individuals take place in the territory of the state, where the buyer is the withholding agent, except where an agent within the state council is entrusted with the declaration of the payment of taxes。
A person who withholds the obligation in accordance with the provisions of this law shall be subject to the deduction of the tax according to the sales multiplied by the tax rate。
Article 16. Dismissal of taxes is the amount of value added tax (vat) tax calculated on the basis of sales multiplied by the rate provided for in this law in case of taxable transactions by the taxpayer。
The entry tax is the value added tax (vat) on which the taxpayer acquires goods, services, intangibles, real estate payments or burdens。
The taxpayer shall deduct the amount of the tax from the amount of the tax to be paid by means of a law, administrative regulation or a certificate of value added tax deduction under the state council。
Article 17 sale amounts are the relevant prices obtained by taxpayers in connection with taxable transactions, including the full equivalent of monetary and non-monetary economic benefits, excluding sales taxes calculated on the basis of general taxation and taxes payable on the basis of simple taxation。
Article 18 sales are calculated in rmb. If the taxpayer settles its sales in a currency other than the rmb, it shall be calculated at the equivalent of the rmb。
In the event of a taxable transaction under article 5 of this law and the amount of the sale being non-monetary, the taxpayer shall determine the amount of the sale in accordance with the market price。
Article 20. The tax authorities may approve sales in accordance with the law of the people's republic of china on the regulation of the collection of taxes and the relevant administrative regulations if the sales are clearly low or high and unjustified。
Article 21 the taxpayer may choose to carry over and continue the crediting or request a refund from the next period, in accordance with the provisions of the state council, if the amount of the current inflow tax is greater than the amount of the current tax。
Article 22 the following revenue taxes of the taxpayer shall not be deducted from their sales:
(i) the amount of the revenue tax corresponding to the item on which the simple method of taxation is applied
(ii) the amount of the income tax corresponding to the value-added tax item
(iii) the amount of the advance tax to which the loss item relates
(iv) revenue taxes on goods, services, intangible assets and real estate acquired and used for collective welfare or personal consumption
(v) revenue taxes on catering services, day-to-day residential services and recreational services purchased and used directly for consumption
(vi) other revenue taxes established by the state council。
Chapter iv tax incentives
Article 23 if a small taxpayer engages in taxable transactions and the sales do not reach the point of entry, the value added tax (vat) is waived; if the point of entry is reached, the full amount of vat is calculated in accordance with the provisions of this act。
The criteria for the entry points set out in the preceding paragraph shall be set by the state council and reported to the standing committee of the national people's congress。
Article 24 exemption from vat for the following items:
(i) self-produced agricultural products sold by agricultural producers, farm farming, drainage, pest control, plant protection, agricultural insurance and related technical training, poultry, livestock, aquatic fauna and disease control
(ii) medical services provided by medical institutions
(iii) old books, items sold by natural persons for their own use
(iv) import instruments and equipment for direct use in scientific research, scientific experiments and teaching
(v) imported goods and equipment aided free of charge by foreign governments and international organizations
(f) direct import by organizations of persons with disabilities of items intended for their own use and services provided by persons with disabilities
(vii) fostering services in nurseries, kindergartens, old-age institutions, services for the disabled, marriage referral services, funeral services
(viii) education services provided in schools, and services provided by students who work hard
(ix) receipts from the administration of memorials, museums, cultural houses, preservation units, galleries, galleries, galleries, galleries, libraries for the organization of cultural activities and from the holding of cultural and religious events in religious sites。
The specific criteria for exemption items set out in the preceding paragraph are set by the state council。
In accordance with the economic and social development needs of the nation, the state council may formulate a specific policy on value added tax (vat) preferences in support of micro-enterprise development, the promotion of priority industries, the encouragement of creative entrepreneurship and public-interest donations, for submission to the standing committee of the national people's congress。
The state department should assess and adjust vat preferences in due course。
Article 26: taxpayers and business value-added tax (vat) preference items shall be accounted for separately for sales of vat preference items; no tax preference shall be granted for projects that are not accounted for separately。
Article 27 the taxpayer may waive the vat benefit; if he waives the benefit, he shall not be entitled to the tax benefit for a period of thirty-six months, except for small taxpayers。
Chapter v administration of expropriation
Article 28. The time when the vat tax obligation arises is determined according to the following provisions:
(i) in the case of taxable transactions, the date on which the tax obligation arises to obtain proof of receipt or receipt of the sale; in the case of invoices issued first, the date on which the invoice is issued。
(ii) the taxable transaction takes place on the date on which the taxable transaction is completed。
(iii) imported goods, the date on which the tax obligation arises and the date on which the goods are declared as imported。
Vat withholding obligations take place on the date on which the taxpayer's vat tax obligation takes place。
Article 29 place of payment of vat is determined in accordance with the following provisions:
(i) a taxpayer who has a fixed place of production shall make a declaration of taxation to the competent tax authorities of the place or place of residence of the institution. If the general body and branch is not in the same county (municipality), the tax is to be declared separately to the competent tax authorities of the respective district, which, with the approval of the provincial or higher financial and tax authorities, may be collected by the general body to the competent tax authorities of the place where the general agency is located。
(ii) a taxpayer who does not have a fixed place of production shall make a declaration of tax to the competent tax authority in the place where the tax transaction takes place; if the tax is not declared, the tax shall be paid by the competent tax authority in the place where the institution is located or in the place of residence。
(iii) the sale or lease of immovable property by a natural person, the transfer of the right to use natural resources and the provision of construction services shall be subject to a declaration of tax to the competent tax authorities of the place where the immovable property is located, the place where the natural resources are located and the place where the construction services take place。
(iv) taxpayers who import goods shall declare their tax according to the location specified by customs。
(v) the person who withholds the obligation shall declare the payment of the tax withheld to the competent tax authority of the place or place of residence of the institution; if the place or place of residence of the institution is abroad, the tax withheld shall be declared to the competent tax authority of the place where the tax transaction took place。
Article 30 the vat shall be taxed for 10, 15, 1 month or 1 quarter, respectively. The specific tax period of the taxpayer is determined by the competent tax authority according to the size of the taxpayer's tax liability. Taxpayers who do not regularly engage in taxable transactions are subject to subtaxation。
If the taxpayer has a tax period of one month or one quarter, the tax is declared within fifteen days from the date of expiry; if the tax period is 10 or 15 days from the first day of the following month。
The tax period during which the tax is withheld and the period during which the tax is declared shall be implemented in accordance with the preceding paragraphs。
Taxpayers who import goods shall declare and pay taxes in accordance with the deadlines set by the customs。
Article 31 if the taxpayer makes 10 or 15 days a tax period, the tax shall be paid in advance within five days of the expiration date。
The provisions of laws and administrative regulations that provide for the advance payment of taxes by taxpayers are also applicable。
Article 32 vat is levied by tax authorities and vat on imported goods is collected by customs。
Customs should provide information to tax authorities on the declaration of value added tax and export of goods。
The methodology for the calculation of vat for persons carrying or sending imported goods is established by the state council and reported to the standing committee of the national people's congress。
Article 33 taxpayers who export goods or cross-border sales of services, intangible assets, subject to a zero tax rate, shall declare a refund (exempt) to the competent tax authorities. Specific procedures for export refunds (exemption) are developed by the state council。
Article 34 taxpayers shall issue and use vat invoices in accordance with the law. Value added tax invoices include paper and electronic invoices. Electronic invoices have the same legal effect as paper invoices。
The state actively promotes the use of electronic invoices。
Article 35 tax authorities establish mechanisms for information-sharing and coordination of work on vat with industry and information, public security, customs, market supervision, people's banks, financial supervision, etc。
The authorities concerned shall, in accordance with the laws and administrative regulations and within their respective areas of competence, support and assist the tax authorities in the administration of vat collection。
Article 36 the administration of the collection of vat is carried out in accordance with the provisions of this law and the law of the people's republic of china on the administration of taxation。
Article 37 taxpayers, withholding duty-bearers, tax authorities and their staff shall be held liable under the law of the people's republic of china on the administration of the collection of taxes and on the provisions of relevant laws and administrative regulations, in violation of the provisions of this law。
Chapter vi
Article 38 this act has been in force since 1 january 2026. The provisional regulations of the people's republic of china on vat were also repealed。
