Value-added tax is a turnover tax levied on the basis of the value-added generated by the circulation of goods including taxable services. From the tax principle, value-added tax is a turnover tax levied on the added value of many links such as commodity production, circulation and labor services or the added value of commodities. Extra-price tax is implemented, that is, it is borne by consumers, and tax is levied only if there is value added, and tax is not levied if there is no value added.
Value-added tax is a tax levied on the value-added of units and individuals who sell goods or provide processing, repair and replacement services and import goods. Value-added tax has become one of the most important taxes in China, and its income accounts for more than 60% of all taxes in China, making it the largest tax. Value-added tax is collected by the State Taxation Bureau, with 50% of the tax revenue coming from the central government and 50% from local governments. The import value-added tax is collected by the customs, and all the taxes are the central fiscal revenue.
The scope of VAT collection is as follows:
1. Transportation includes land transportation, water transportation, air transportation and pipeline transportation;
2. Modern service industry includes R&D and technical services, information technology services, cultural and creative services, logistics auxiliary services, tangible movable property leasing services and judicial expertise consulting services.
The types of VAT are as follows:
1, production vat. Productive value-added tax means that when collecting value-added tax, only the part of the means of production belonging to non-fixed assets can be deducted, and the tax included in the value of fixed assets is not allowed to be deducted;
2. Income-based value-added tax. Income-based value-added tax means that when collecting value-added tax, only the tax included in the depreciation part of fixed assets is allowed to be deducted, and the depreciation part is not included in the deduction;
3. Consumption value-added tax. Consumer value-added greetings and eggplant tax mean that all taxes included in the value of fixed assets are allowed to be deducted at one time when VAT is levied.
laws and regulations
Provisional Regulations of People's Republic of China (PRC) Municipality on Value-added Tax
Article 15 The following items shall be exempted from value-added tax:
(1) Self-produced agricultural products sold by agricultural producers;
(2) Contraceptive drugs and devices;
(3) old books;
(4) Imported instruments and equipment directly used for scientific research, scientific experiments and teaching;
(five) quietly drafting imported materials and equipment provided by foreign governments and international organizations free of charge;
(six) articles for the disabled directly imported by organizations for the disabled;
(7) selling articles for personal use.
In addition to the provisions of the preceding paragraph, the items of tax exemption and reduction of value-added tax shall be stipulated by the State Council. No region or department may stipulate tax exemption or reduction items.