According to the regulations, the consumption tax on gold and silver jewelry is changed from production and sales to retail.
It should be noted that
1. Among the sales of gold and silver ornaments sold by taxpayers, if the VAT tax is not deducted, the sales of gold and silver ornaments = sales with VAT ÷( 1+ VAT rate or collection rate);
2. If the gold and silver jewelry is sold together with the package, the consumption tax shall be levied on the gold and silver jewelry sold; If gold and silver jewelry is processed with supplied materials, consumption tax shall be levied according to the sales of gold and silver jewelry. If there is no sales price of similar gold and silver jewelry, it shall be taxed according to the taxable value composition, which is = (material cost+processing fee) ÷( 1- consumption tax rate of gold and silver jewelry).
According to the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on the Reduction of 5% Consumption Tax on Gold and Silver Jewelry, the consumption tax on gold and silver jewelry is halved from 10% to 5%, and the scope of the reduction of 5% consumption tax includes gold and silver and gold-based and silver-based alloy jewelry, as well as gold and silver and gold-based and silver-based alloy inlaid jewelry.