1. Concept of mixed sales and concurrent operation
   
   

   (1)

   Concurrent Operation Taxpayers sell merchandise processing repair and maintenance, as well as offering service, intangible assets, and immovable property, which is considered as concurrent operation. Based on the Tax Law regulated in China, taxpayers are involved in various tax rates from concurrent operation, sales amounts should be calculated at various tax rates or confiscatory rates; those who have not calculated sales amount separately, will be counted at the highest tax rates. Therefore, taxpayers who take over concurrent operation could be involved in various items with different tax rates, which should calculate sales income separately, and those who have not done in a separate way, should count their sales incomes with the highest tax rates.

   (2)

   Mixed Sales Sales behavior by the same taxpayer contains sales service and merchandise is called mixed sales. As the Tax Law regulated by China, manufacturing merchandise, whole sales, or retail gets involved in mixed sales, enterprises or individual industry and commercials should pay VAT based on merchandise in actual sold; others should pay VAT through actual sales service. Enterprises or individual industry and commercials who are taking over manufacturing, whole sales, or retail, including individuals and enterprises who mainly operate manufacturing, whole sales, or retail, and concurrently offer sales services.

   
   
2. Methods to Discriminate
   
   

   (1)	Taxpayers selling goods, processing labor, services, intangible assets, immovable property, and imported merchandise, which are considered as concurrent operation if not involved in the same sales activity. Which means, in the operation, two or more sales activities are occupied in the enterprise without direct connection or affiliation, sales activities are independent to each other.
   (2)	Mixed sales activities have merchandise and services combined in the incidence of VAT taxation, other combinations such as sales on merchandise and intangible assets, are not part of concurrent operation. Mixed sales activities belong to sales behavior, they have direct relation or affiliation even though they are occupied in goods and services.

   
   
3. Circumstances
   
   

   (1)	Enterprises occupy Construction selling prefabricated houses, machine equipment, steal structures, self-manufactured goods like these also provide installation, construction, do not belong to mixed sales activities. Taxpayers should calculate sales income from merchandise and construction service separately, corresponding to distinct tax rates or tax collection.
   (2)	General taxpayers who sell self-manufactured machine equipment while providing installation, should calculate sales income from machine equipment and installation in a separate way. Installation service could be taxable based on the calculation selected by the first party who are contracted in the project.

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