According to Article 5 of the Announcement of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Several Issues Concerning the Administration of the Collection of Value-added Tax on Chinese-foreign Cooperative Education (State Taxation Administration of The People's Republic of China Announcement No.42, 20 18), the fee or commission income obtained by auction houses through entrusted auctions shall be subject to value-added tax as "brokerage services".