The consumption tax is calculated according to the actual money collected for exchanging old gold and silver jewelry for new ones, that is, the consumption tax payable = the difference between the old one and the new one /(1+17%)*5%

Item 4 of Article 7 "Tax Basis" of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Relevant Issues Concerning Adjusting the Tax Link of Consumption Tax on Gold and Silver Jewelry ((94) Caishuizi No.95) stipulates: Extended information

The Ministry of Finance and State Taxation Administration of The People's Republic of China have issued two documents to clarify the tax treatment of gold and silver jewelry trade-in business.

Document Caishuizi [1994] No.95 stipulates: "Taxpayers should determine the tax basis and collect consumption tax on the gold and silver jewelry sold in the old-for-new way according to the total price actually collected excluding value-added tax."

Caishuizi [1996] No.74 Notice on the Collection of Value-added Tax on Goods such as Gold and Silver Jewelry stipulates: "For the trade-in business of gold and silver jewelry, the value-added tax can be collected according to the total price actually collected by the seller without value-added tax."

as can be seen from the above two documents, the tax basis is the same when calculating the value-added tax and consumption tax for the trade-in business of gold and silver jewelry. In addition, the trade-in business of other commodities is still determined according to the sales price of new goods in the same period.

Notice of Zhejiang Taxation Bureau-Ministry of Finance on the relevant accounting treatment regulations after adjusting the consumption tax link of gold and silver jewelry.