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Q：
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Is value-added tax an extra-price tax?
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A：
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Value-added tax (VAT) is an extra-price tax. The sales number of taxable transactions does not include the VAT amount. The VAT amount shall be separately listed on the transaction vouchers in accordance with the regulations of The State Council.
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Q：
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What are the tax calculation methods for value-added tax?
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A：
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When taxpayers engage in taxable transactions, they shall calculate and pay value-added tax by offsetting the input tax from the output tax amount in accordance with the general tax calculation method. Except as otherwise provided in the Value-Added Tax Law of the People's Republic of China. Small-scale taxpayers can calculate and pay value-added tax using a simplified tax calculation method that calculates the tax payable based on sales revenue and collection rate. The tax calculation methods for value-added tax on Sino-foreign cooperative exploitation of offshore oil and natural gas, etc., shall be implemented in accordance with the relevant provisions of The State Council.
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Q：
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What is a small-scale taxpayer?
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A：
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The term "small-scale taxpayer" as used in the Value-added Tax Law of the People's Republic of China refers to a taxpayer whose annual value-added tax (VAT) taxable sales do not exceed 5 million yuan.
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Q：
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What is the taxable amount?
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A：
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Where value-added tax is calculated and paid in accordance with the general tax calculation method, the tax payable shall be the balance after deducting the input tax of the current period from the output tax of the current period. Where value-added tax is calculated and paid in accordance with the simplified tax calculation method, the tax payable shall be the current sales amount multiplied by the levy rate. For imported goods, value-added tax shall be calculated and paid by multiplying the composite taxable price as stipulated in the Value-Added Tax Law of the People's Republic of China by the applicable tax rate. Form the taxable price, which is the tariff taxable price plus tariffs and consumption taxes. Where The State Council has other provisions, such provisions shall prevail.
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Q：
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Who is the withholding agent?
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A：
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For taxable transactions conducted by overseas entities and individuals within the territory of China, the purchaser shall be the withholding agent. Except for those who entrust domestic agents to declare and pay taxes in accordance with the regulations of The State Council. Where a withholding agent withholds and remits taxes in accordance with the provisions of the Value- Added Tax Law of the People's Republic of China, the amount of tax to be withheld shall be calculated by multiplying the sales amount by the tax rate.
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FAQ
