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Your Current Location:Home » Classic Case » Value-added Tax » Announcement of the State Administration of Taxation on Relevant Issues Concerning the Determination of the Sales Volume Subject to VAT of Direct Selling Enterprises

Value-added Tax

Announcement of the State Administration of Taxation on Relevant Issues Concerning the Determination of the Sales Volume Subject to VAT of Direct Selling Enterprises

Time:2013-05-02   Hits:1584

In accordance with the "Interim Regulations of the People's Republic of China on Value Added Tax" and its specific measures for the implementation, the relevant issues on the determination of the sales volume subject to VAT of the goods sold by direct selling companies through direct selling are hereby notified as follows:

 

I. Where a direct selling enterprise firstly sells the goods to direct sellers who in turn sell the goods to consumers, the enterprise's sales volume shall be the full price and the other non-price charges collected from the direct sellers. The direct sellers shall be subject to VAT in accordance with the existing regulations when selling goods to consumers.

 

II. Where a direct selling enterprise sells goods to consumers through direct sellers and collects payment directly from consumers, the enterprise's sales volume shall be the full price and the other non-price charges collected from the consumers.

 

The Announcement shall come into force on March 1, 2013. Tax-related matters occurred before receiving the Announcement but have not yet been treated shall be subject to the provisions of the present Announcement.

 

The Announcement is hereby issued as described above.

 

State Administration of Taxation

January 17, 2013

 

Send copies to: state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state budgetary plan.

 

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