Provisional Regulations of People's Republic of China (PRC) Municipality on Value-added Tax

DecreeNo. 134 issued in the State Council, People's Republic of China (PRC), revised and adopted at the 34th executive meeting in the State Council in 2008).

Article 1 Units and individuals that sell goods or provide processing, repair and replacement services and import goods within the territory of People's Republic of China (PRC) are taxpayers of value-added tax and shall pay value-added tax in accordance with these regulations.

Article 2 VAT rate:

1. The tax rate of taxpayers selling or importing goods is 17%, except as provided in items (2) and (3) of this article.

2. The tax rate for taxpayers selling or importing the following goods is 13%:

Grain, edible vegetable oil, tap water, heating, cold air, hot water, gas, liquefied petroleum gas, natural gas, biogas, coal products for residents.

Books, newspapers, magazines, feed, chemical fertilizer, pesticides, agricultural machinery, agricultural film.

Other goods specified by the State Council.

Third, taxpayers export goods at zero tax rate; However, unless otherwise stipulated by the State Council.

Fourth, taxpayers provide processing, repair and replacement services (hereinafter referred to as taxable services), and the tax rate is 17%.

The adjustment of tax rate is decided by the State Council.