The Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on the Application of VAT Rate to Some Goods and the Policy of Collecting VAT by Simple Method (Article 2, Item 3, No.9, Caishuizi [2009]) stipulates that general VAT taxpayers can choose to calculate and pay VAT at the rate of 6% according to the simple method when selling sand, soil and stone used as building materials for their own use.
2. The Notice on the Policy of Degenerate VAT Collection Rate (Caishui (2014) No.57) stipulates that Item (3) of Article 2 and Article 3 of Caishui [2009] No.9 are adjusted from "6% collection rate" to "3% collection rate". For small-scale taxpayers, the value-added tax rate is not applicable, and the sand and gravel sales should be levied at the rate of 3%.