2. Value-added tax is levied in accordance with the provisions of the tax law only if it involves the business of buying and selling gold and silver by banks. For this business, if a general VAT taxpayer obtains a special VAT invoice when buying gold and silver, he can deduct the input tax with the ticket.
According to the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Relevant Issues Concerning the Adjustment of Consumption Tax on Gold and Silver Jewelry ((1994) Caishuizi No.95):
"With the approval of the State Council, the consumption tax on gold and silver jewelry was changed from production and sales to retail. The relevant provisions are hereby notified as follows:
The scope of gold and silver jewelry for retail consumption tax
The scope of gold and silver ornaments for which consumption tax is levied on retail links is limited to: gold, silver and gold-based and silver-based alloy ornaments, as well as gold, silver and gold-based and silver-based alloy inlaid ornaments (hereinafter referred to as gold and silver ornaments).
Jewelry that does not fall within the above scope and is subject to consumption tax (hereinafter referred to as non-gold and silver jewelry) is still subject to consumption tax on its production and sales. "
First, for financial institutions engaged in physical gold trading business, the provincial branches and municipal branches of financial institutions shall pay value-added tax in advance according to the prescribed withholding rate, and the provincial branches and municipal branches shall make unified settlement and payment.
(1) Branches and savings offices that have physical gold transactions shall make monthly statistics on the sales quantity and amount of physical gold, and report to the superior branches.
(2) All branches, sub-branches and savings offices shall go through tax registration with the local competent State Taxation Bureau according to law. All branches shall summarize the physical gold sales reported by their branches and savings offices and the physical gold sales of branches on a monthly basis, calculate the pre-tax amount of value-added tax according to the prescribed pre-tax tax rate, and report and pay the value-added tax to the competent tax authorities.
Pre-tax amount = sales × pre-tax tax rate
(3) All provincial branches and directly subordinate first-level branches shall apply to the local competent State Taxation Bureau for tax registration and apply for the qualification of general VAT taxpayer. Summarize the input tax of physical gold sales reported by branches or sub-branches in various cities every month, calculate the payable amount of value-added tax according to the general taxpayer method, calculate the amount of overdue tax according to the pre-tax amount, and report and pay to the competent tax authorities.
Taxable amount = output tax-input tax
Taxable amount = Taxable amount-Pre-tax amount
If the current input tax amount is greater than the output tax amount, the remaining tax amount will be carried forward to the next period for deduction, and if the pre-tax amount is greater than the taxable amount, it will be deducted from the taxable amount of the next period of VAT.
(four) the input tax obtained by financial institutions at all levels engaged in physical gold trading business is divided into non-deductible input tax according to the current regulations, and the input tax is transferred out.
(5) The withholding rate shall be determined by the provincial State Taxation Bureau where each provincial branch office and the directly subordinate branch office are located.