The scope of VAT taxation includes: selling and importing goods, and providing processing, repair and replacement services. Goods here refer to tangible movable property, including electricity, heat and gas. , excluding real estate. Processing refers to the entrusted processing of goods, that is, the entrusting party provides raw materials and main materials, and the entrusted party manufactures goods according to the requirements of the entrusting party and collects processing fees; Repair and repair refers to the business of repairing damaged and invalid goods and restoring them to their original state and function.

In addition, the following acts are regarded as selling goods and are subject to VAT.

Entrust the goods to others for sale.

Sell goods on behalf of others

Transferring goods from one place to another (except the same county and city)

Use self-produced or entrusted goods for non-taxable items.

Goods produced, commissioned or purchased are regarded as investments in other units.

Distributing goods produced, processed or purchased to shareholders or investors.

Use the self-produced entrusted goods for employee welfare or personal consumption.

Give the goods produced, processed or purchased to others free of charge.

In China, the scope of collection of value-added tax and business tax do not overlap with each other, and those who collect value-added tax will no longer collect business tax. However, in actual economic activities, there are two kinds of taxable behaviors, namely, taxpayers run part-time or mixed operations.

A sales behavior involving both VAT taxable goods and business tax taxable services is regarded as mixed sales behavior. For example, taxpayers sell goods and are responsible for transportation. Selling goods belongs to the scope of value-added tax collection, and transportation belongs to the scope of business tax collection. The tax treatment for this is that taxpayers who are mainly engaged in the production, wholesale or retail of goods (that is, taxpayers' annual sales turnover of goods accounts for more than 50% of their total turnover) are regarded as selling goods and no business tax is levied; Other taxpayers who are not engaged in the production, wholesale and retail of goods are regarded as taxable services of business tax, and no value-added tax is levied.

Different from mixed sales behavior, part-time sales behavior means that taxpayers engage in VAT taxable behavior and business tax taxable behavior at the same time, and there is no direct connection and subordinate relationship between them. The tax treatment method for this is to require taxpayers to separate the two accounts and pay taxes separately. If it cannot be accounted for separately or the accounting is inaccurate, value-added tax will be levied on all of them.

Other special taxable scope of value-added tax also includes: physical delivery of commodity futures, pawn sales, production and sales of philatelic products by non-postal departments (postal departments pay business tax on production and sales of philatelic products) and so on.

legal ground

Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance on Comprehensively Promoting the Pilot of Changing Business Tax to VAT (Caishui [2065438+06] No.36);

Article 15 VAT rate:

(a) taxpayers engaged in taxable activities, the tax rate is 6%, except as stipulated in items (2), (3) and (4) of this article.

(2) Providing transportation, postal services, basic telecommunications, construction and real estate leasing services, selling real estate and transferring land use rights, with the tax rate of 1 1%.

(3) Providing tangible movable property leasing services at the tax rate of 17%.