Withholding VAT = the price paid by the buyer ÷( 1+6%)×6%.
The commission paid by an enterprise to domestic customers shall be VAT payable = sales amount including tax ÷( 1+3%)×3%, and sales amount less than 30,000 yuan shall be exempted from VAT.
Value-added tax is a tax levied on the value-added of units and individuals who sell goods or provide processing, repair and replacement services and import goods. Value-added tax has become one of the most important taxes in China, accounting for more than 60% of all taxes in China, and it is the largest tax.
Value-added tax is collected by the State Taxation Bureau, and 50% of the tax revenue comes from the central government and 50% from local governments. The import value-added tax is collected by the customs, and all the taxes are the central fiscal revenue.
Extended data:
Scope of exemption
Article 15 of the Provisional Regulations on Value-added Tax in People's Republic of China (PRC) stipulates that the following seven items shall be exempted from value-added tax:
1, self-produced agricultural products sold by agricultural producers;
2. Contraceptive drugs and devices;
3. Old books;
4 imported instruments and equipment directly used for scientific research, scientific experiments and teaching;
5. Imported materials and equipment provided by foreign governments and international organizations free of charge;
6. Special articles for the disabled are directly imported by disabled organizations;
7. sell your used items.
In addition to the provisions of the preceding paragraph, the items of tax exemption and reduction of value-added tax shall be stipulated by the State Council. No region or department may stipulate tax exemption or reduction items.
Baidu Encyclopedia-VAT