Consumption tax is regarded as sales behavior, including taxpayers' use of self-produced taxable consumer goods for the production of non-taxable consumer goods, projects under construction, management departments, non-productive institutions, provision of labor services, as well as for gifts, sponsorship, fund-raising, advertisements, samples, employee welfare, awards, etc. Taxable consumer goods transferred for continuous production of taxable consumer goods shall be subject to consumption tax as sales. Under normal circumstances, taxable consumer goods first confirm the sales income according to the sales price of similar consumer goods produced by taxpayers; If there is no similar sales price of consumer goods, it shall be calculated according to the taxable value composition.

Deemed sales include the following situations:

1. Income tax is regarded as sales behavior: the exchange and use of non-monetary assets, donations, debt repayment, sponsorship, fund-raising, advertisements, samples, employee benefits or profit distribution by enterprises are regarded as sales confirmation income;

2. Consumption tax is regarded as sales behavior: taxpayers use self-produced taxable consumer goods for the production of non-taxable consumer goods, projects under construction, management departments and non-production institutions, provide labor services, and use them for gifts, sponsorship, fund-raising, advertisements, samples, employee welfare, awards, etc.

3. Business tax is regarded as sales behavior:

(1) The unit or individual gives the real estate or land use right to other units or individuals free of charge;

(two) the self-built behavior of units or individuals to build (hereinafter referred to as self-built) houses and sell them.

4. Land value-added tax is regarded as sales behavior: when real estate development enterprises use the developed products for employee welfare, incentives, foreign investment, distribution to shareholders or investors, repayment of debts, and exchange for non-monetary assets of other units or individuals, they are regarded as selling real estate;

5. Resource tax is regarded as sales behavior: self-produced and self-used products are regarded as sales, including non-production items and production of non-taxable products;

6. Value-added tax is regarded as sales behavior:

(1) Deliver the goods to other units or individuals for consignment;

(2) Consignment of goods;

(three) taxpayers with more than two institutions and unified accounting transfer goods from one institution to other institutions for sale, except that the relevant institutions are located in the same county (city);

(four) the use of goods produced or commissioned for non taxable items;

(five) the self-produced or entrusted goods for collective welfare or personal consumption;

(6) Providing goods produced, processed or purchased as investment to other units or individual industrial and commercial households;

(7) Distribution of goods produced, entrusted or purchased by shareholders or investors;

(8) Providing goods produced, entrusted or purchased to other units or individuals free of charge;

(9) Units or individual industrial and commercial households sell taxable services or transfer intangible assets or real estate to other units or individuals free of charge, except public welfare undertakings or the public;

(10) Other circumstances specified by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China.

To sum up, it is regarded as a sales act, and the full name is "regarded as a sales act". It means different from ordinary sales, it is a special sales behavior, but for tax purposes, it is regarded as sales from the perspective of taxation. Taxable consumer goods produced by taxpayers for their own use shall be taxed according to the sales price of similar consumer goods produced by taxpayers.

Legal basis:

Article 4 of the Provisional Regulations of People's Republic of China (PRC) on Consumption Tax

Taxable consumer goods produced by taxpayers are taxed at the time of sale. Taxpayers who produce taxable consumer goods for their own use and use them for the continuous production of taxable consumer goods are not taxed; If it is used for other purposes, it will be taxed when it is transferred.

Taxable consumer goods entrusted for processing shall be collected and remitted by the entrusted party at the time of delivery to the entrusting party, unless the entrusted party is an individual. The taxable consumer goods processed by the entrusting party are used for the continuous production of taxable consumer goods, and the tax paid is allowed to be deducted according to the regulations.

Taxable consumer goods imported shall be taxed at the time of customs declaration.

Article 6 of the Detailed Rules for the Implementation of the Provisional Regulations on Consumption Tax in People's Republic of China (PRC)

The term "continuous production of taxable consumer goods" as mentioned in the first paragraph of Article 4 of the Regulations refers to the entity in which taxpayers use self-produced taxable consumer goods as direct materials to produce final taxable consumer goods, and make self-produced taxable consumer goods into final taxable consumer goods.

For other purposes as mentioned in the first paragraph of Article 4 of the Regulations, it means that taxpayers use self-produced taxable consumer goods for the production of non-taxable consumer goods, projects under construction, management departments, non-productive institutions, provision of labor services, gifts, sponsorship, fund-raising, advertisements, samples, employee welfare, incentives, etc.