Value Added Tax (VAT) Q&A

VAT is levied on basis of the value added realized in course of sales of goods or provision of services. It is a tax popularly levied in the world. Foreign enterprises who are engaged in the sales of goods, importation of goods, provision of processing, repairs and replacement services with China are taxpayers of VAT. For the overseas units or individuals sell taxable services in China without entities in China, their VAT payable shall be withheld by agents. In case of no agent, the purchasers shall be the withholding agents. This topic offers a wide range of taxable items and rates, VAT computation method, VAT reductions and exemptions, export refund, time limit, where the tax payments should be made, and answers to questions you may have.

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Useful Articles:

•  Q: Where to pay VAT?
•  Q: Where do chain enterprises pay vat?
•  Q: What are the rules for determining when the liability to vat arises?
•  Q: What is input tax? What input taxes are creditable?
•  Q: Who are taxpayers of VAT?
•  Q: What are the main vat tax reduction and exemption provisions?
•  Q: What are the goods for which vat can be refunded (or exempt) as especially specified by the State?
•  Q: How to claim for vat refund for exported goods?
•  Q: How many rates are there in VAT? To what goods and services is each of them applicable?
•  Q: How vat is assessed and paid for imported goods?
•  Q: What is the time for vat payment?
•  Q: Who are small-scale taxpayers?
•  Q: What small-scale taxpayers may be treated as normal vat taxpayers and compute and pay vat accordingly?
•  Q: How should small-scale taxpayers compute their vat payable?
•  Q: What is output tax? How to compute it?
•  Q: Who are normal VAT taxpayers?
•  Q: How normal VAT taxpayers compute their vat payable?
•  Q: What normal vat taxpayers are allowed to compute and pay vat at 6% levying rate?
•  Q: What activities are mixed sales? And what tax is levied?
•  Q: Under what circumstances are input taxes not creditable?
•  Q: When are input taxes capable of claiming for credits?
•  Q: How to determine the sales value for the current period?
•  Q: What activities are deemed as sales of goods? And what tax is levied?

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