The Announcement of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Issues Related to General Taxpayers' Sale of Self-use Fixed Assets (State Taxation Administration of The People's Republic of China AnnouncementNo. 1 No.20 12) stipulates that if the general VAT taxpayer sells self-use fixed assets, it can collect VAT at a reduced rate of 4% according to the simplified method (amended as "VAT can be collected at a reduced rate of 3% and VAT can be collected at a reduced rate of 2% according to the simplified method).

1. Taxpayers who purchase or make their own fixed assets and sell them after being recognized as ordinary taxpayers are small-scale taxpayers.

Two, the general taxpayer of value-added tax shall collect the taxable behavior of value-added tax according to the simple method, and the fixed assets sold by it shall not be deducted according to the regulations and the input tax shall not be deducted.

At the same time, for ordinary taxpayers to sell their used non-deductible fixed assets that have not been deducted from the input tax according to the provisions of Article 10 of the Regulations, the simple method shall be applied to levy VAT at a rate of 4%.

If the input tax is deducted at the time of purchase, the value-added tax shall be paid at the applicable tax rate at the time of handling.