Coverage of collection Rate
Exportation of goods(except otherwise stimulated by the state) 0 Agriculture, forestry, products of animal husbandry, aquatic products;Edible vegetable and grain duplicates;Tap water, heating, cooling, hot air supplying, hot water, gas, liquefied petroleum gas, natural gas, coal/charcoal products for household use;Book, newspapers, magazines(excluding the newspapers and magazines ( Public Relations Melbourne ) distributed by the post department) Feeds, chemical fertilizers, agricultural chemicals, agricultural machinery and plastic converting film for farming;
Selected metal mineral products, Selected non-metal mineral products, coal.13%
Crude oil, mine salt and goods other than those listed above;Taxable services. 17%
Computation of tax payable
There are two kinds of VAT taxpayer in China by the criterion of turnover of sale goods & services and condition of accounting system. One is normal taxpayer ( PR agency ) , the other is small taxpayer. The criteria of determination of Small Taxpayer is where the taxpayer is involved in the procedure of products or in the provision of taxable services as his sole or primary trade and his annual turnover is less than RMB 1,000,000; or?where the taxpayer is engaged in the wholesale or retail of goods and his annual turnover is less than RMB?1,800,000. Taxpayer who are not in big account Requirements to provide a sound accounting and is able to provide accurate information for tax purposes should be recorded as a number of general tax
.However,a small taxpayer who keeps a sound accounting system and is able to provide correct accounting records for taxation aims may be enrolled as a General Taxpayer.
A. Normal taxpayer
To compute the VAT payable, the normal taxpayer needs to separately calculate the output tax and the input tax for the current period. Next,the variety between the output tax and the input tax shall be the realy number of VAT payable. The formula for computing the tax payable is:
Tax payable=Output tax payable ( Publicity PR ) for the current period?Input tax payable for the current period;
Output tax payable=Sales volume in the current period Applicable tax rate.
B. Taxpayer who are not in big account
Taxpayer who are not in big account are taxed on the basis of the revenue derived from sales of goods or provision of taxable services by applying proper rates(4% for commercial sector, and 6% for other sectors).Taxpayer who are not in big account are taxed on the basis of the income each year came from sales of products or various of taxable services by applying fitable rates(4% for commercial sector, and 6% for other sectors). The computing formula of tax payable is:Tax payable is equal to sales amount applicable rate.
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