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Home> FAQS > About Value-added Tax
About Value-added Tax |
1)Q:Can the VAT special invoice issued by the tax bureau
on behalf of small-scale taxpayer credit the Input VAT? |
| Yes. The taxation rate for special invoice issued by proxy shall be 4% or 6%, and general taxpayer will use this special invoice as credit proof. |
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2)Q:Can Foreign Investment Enterprise , being small-scale
taxpayer , purchase home equipment with VAT refund? |
| Yes. Home equipment purchased by non-VAT payer, small-scale taxpayer as well as Foreign Investment Enterprise set up in bonded area, in compliance with relevant requirements (GSF (1999) No. 171), can process refund of tax. |
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3)Q:Can this company , being retail enterprise with annual
turnover about RMB 2.1 million , refuse application for
the qualification of general taxpayer? |
| No. According to requirements, enterprise with annual turnover above RMB 1.8 million will apply to tax bureau to become general taxpayer. |
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| 4)Q:Can plain invoice credit Input VAT? |
| No.VAT special invoice recognized by the Tax Law can only credit Output VAT, but the amount of plain invoice can be included in purchase cost. |
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5)Q:Can exported goods of small-scale taxpayer be
entitled to refund of tax? |
| According to prevailing policies concerning tax rebates (exemptions) for exported goods, the goods exported by small-scale taxpayer on their own or on consignment shall be free of VAT, consumption tax but without refund. |
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6)Q:How can I apply for the qualification of general
taxpayer who can issue VAT special invoice? |
Application for general taxpayer VAT special invoice shall fulfill the following conditions:
Industrial enterprise with annual taxable sales value no less than RMB 1 million
Commercial enterprise with annual taxable sales value no less than RMB 1.8 million
Enterprise with a sound accounting and auditing system and purchased anti-counterfeiting tax control equipment |
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