Question: are self-produced agricultural products sold by agricultural producers exempt from vat
Article 15 of the provisional regulations of the people's republic of china on value added tax, as amended in accordance with the decision of the state council on abolition and modification (state decree no. 691), provides that: “the following items shall be exempt from value added tax:
(i) home-made agricultural products sold by agricultural producers;”
Q: how is the place of taxation for non-regular operators defined
In accordance with article 22 of the provisional regulations of the people's republic of china on value added tax (adopted by the council of state at its 191st ordinary session), (i) fixed-term operators are required to declare their taxes to the competent tax authorities of the place where their agency is located. If the general body or branch is not in the same county or municipality, the tax is to be declared separately to the competent tax authorities of the respective locality, which, with the approval of the fiscal, tax and tax authorities authorized by the state council or by them, may be declared jointly by the general authority to the competent tax authorities of the place where the general agency is located。
(ii) a permanent resident who sells goods or services outside the county (municipality) shall report the matter of his or her business out to the competent tax authority in the place where his or her agency is located and declare the tax to the competent tax authority in the place where his or her agency is located; failure to report is subject to a tax declaration to the competent tax authorities of the place of sale or where the services took place; if the tax is not declared to the competent tax authorities of the place where the sale took place or where the services took place, the tax is paid by the competent tax authorities of the place where the agency is located。
Question: do sellers pay vat for non-default payments to buyers? If vat is paid, how is it calculated
Article vi of the provisional regulations of the people's republic of china on value added tax (adopted by the council of state at its 191st meeting) provides that: “sale is the sum of the full price and non-price charges charged by the taxpayer for the commission of taxable sales, but does not include the amount of the sales tax charged。
Sales are in rmb. If the taxpayer settles the sales in a currency other than the renminbi, it shall be calculated at the equivalent of the renminbi.”
Article 12 of the rules for the implementation of the provisional regulations of the people's republic of china on value added tax (decree no. 50 of the state tax administration authority of the ministry of finance) provides that: “in accordance with article 6, paragraph 1, of the regulations, out-of-price expenses, including fees, subsidies, funds, pooled fees, refunds of profits, incentives, defaults, demurrages, deferred interest, compensation, surcharges, surrogate payments, packing fees, rental of packagings, storage fees, quality fees, handling charges and other price-excise charges of a variety of nature shall be incurred by the purchaser.”
Iii. Pursuant to the circular of the state tax administration on certain administrations of value added taxes [1996] “i. Value added tax (vat) general taxpayers (including taxpayers themselves or on behalf of other sectors) charge out-of-price and late packing deposits to buyers, which shall be considered to include tax revenues and converted into non-taxable income incorporated into sales for value added tax purposes.”
Q: how are vat withholding obligations imposed
Article 18 of the provisional regulations of the people's republic of china on value added tax (adopted by the council of state at its 191st meeting) provides that: “any unit or individual outside the territory of the people's republic of china who does not have an operating agency in the territory of the people's republic of china sells services in the territory of that state and who has its agents in the territory of that state shall be the withholding agent; if there is no agent in the territory, the buyer is the person who withholds the obligation.”
Ii. Notification from the ministry of finance of the national tax administration on the full roll-out of the vat conversion pilot (customs 2016) article 6 states: “in the people's republic of china, taxable acts occur in the territory of units or individuals outside the territory of the people's republic of china (hereinafter referred to as " offshore " ), where there is no operating agency in the territory, the purchaser is the person who deducts the value added tax. Except as otherwise provided by the ministry of finance and the general state tax administration.”
Question: do extra-price fees charged by the buyer for the sale of goods need to be included in the value of sales to pay vat
Article 6, paragraph 1, of the provisional regulations of the people's republic of china on value added taxes (adopted by the 191st general assembly of the state council) states: “sale is the full price and non-price fees charged by the taxpayer for the commission of taxable sales, but does not include the amount of the sales tax charged.”
Article 12 of the rules for the application of the provisional regulations of the people's republic of china on the value added tax (decree no. 50 of the state tax administration department of the ministry of finance) provides that: “article 6, paragraph 1, of the regulations refers to out-of-price charges, including fees, subsidies, funds, pooled fees, refunds of profits, incentive payments, default payments, demurrage payments, deferred interest, compensation payments, surrogate payments, surrogate payments, packing fees, rental of packagings, reserve charges, quality fees, transportation handling charges and all other charges of various nature. ... The following items are excluded:
(i) consumption taxes collected on behalf of consumer goods subject to excise taxes
(ii) the cost of a surrogate transportation which:
(i) invoices issued to the purchaser for transport costs in the carrier sector
The taxpayer transferred the invoice to the purchaser.”
