According to the Official Reply on the Issue of No VAT on the Transfer of Enterprise's All Property Rights (Guo Shui Han [2002] No.420), the transfer of enterprise's all property rights is an overall transfer of enterprise's assets, creditor's rights, debts and labor force. Therefore, the transfer of taxable goods involved in the transfer of enterprise's all property rights does not fall within the scope of VAT taxation and is not subject to VAT.
Extended data:
Details of equity transfer
1. In the equity transfer transaction, the transferor is the taxpayer, and the transferee is the withholding agent, fulfilling the obligation of withholding and paying taxes.
2. After the parties to the equity transaction sign the equity transfer agreement and complete the equity transfer transaction, but before the enterprise changes its equity registration, the transferor or transferee who has the obligation to pay taxes or withhold and remit shall go through the tax (withholding) declaration with the competent tax authorities, and go through the formalities of equity change registration with the administrative department for industry and commerce with the personal income tax payment certificate or tax exemption or non-tax certificate issued by the tax authorities.
3. If the parties to the equity transaction have signed the equity transfer agreement, but the equity transfer transaction has not been completed, the enterprise shall fill in the Report on the Change of Individual Shareholders and report to the competent tax authorities when applying to the administrative department for industry and commerce for the registration of equity change.