Collection department: Shanghai Finance Bureau, State’s Taxation Administration and branches of Shanghai Local Taxation Bureau;
State’s Taxation Administration in districts and counties in Shanghai, branches of Shanghai Local Taxation Bureau in the districts and counties in Shanghai;
Finance Bureaus of the districts and counties in Shanghai.
Collection objects: all units and individuals that sell goods, provide labor for processing and repairing, and import goods within the territory of the People’s Republic of China.
Collection grounds:“Provisional stipulations of the People’s Republic of China regarding value added taxes”(promulgated through Order No. 134 of the State Council dated December 13, 1993);
“Detailed regulations for implementation of the provisional stipulations of the People’s Republic of China regarding value added taxes”((93)CFZ No. 038 document of Ministry of Finance dated on December 25, 1993);
Other laws, decrees and stipulations
Submission to: Shanghai Municipal Finance Bureau ( Shanghai State’s Taxation Administration, Shanghai Local Taxation Bureau)
Web site:
Collection amount: 1. Collection scope: goods sold in, processing and repairing labor provided in, and goods imported to the territory of the People’
2. Tax item and tax rate
VAT tariff applicable to
Or percentage charge
Zero rate exported goods (unless otherwise specified by the State Council)
13% 1.???? Grain, edible vegetable oil
2.???? Running water, heating, cooling, warm water, gas, LPG, natural gas, methane, coal product for residents
3.???? Books, newspaper and magazine
4.???? Forage, chemical fertilizer, pesticide, farming machines, farming film
5.???? Other goods as specified by the State Council
17% Processing and repairing labor, as well as sales or import of other goods than those with zero rate or 13% rate
6% Small size taxpayer(non commercial enterprise)
4% small scale commercial enterprise (for annual application and verification)
3. Zero bracket amount
Scope of zero bracket amount Shanghai area
(1) For sales of goods: monthly sales volume of 600-2000 yuan 1200 yuan
(2) For sales of taxable labor: monthly sales volume of 200-800yuan 600 yuan
(3) For tax payment based on each batch: sales volume per batch (per day) 50-80 yuan 50 yuan
Note: the zero bracket amount applies only to individuals.
4. Calculation of entry tax, exit tax and taxable tax
Entry tax
Entry tax refers to the VAT amount paid or borne by the taxpayer for purchase goods or receiving taxable labor.
(1) Entry tax amounts that can be offset from the exit tax amounts:
1) VAT amount as stated on the special VAT invoice obtained from the seller;
2) VAT amount as stated on the duty paid certificate obtained from the customs;
3) Entry taxes that can be used for offset for purchased duty free agricultural product, purchased obsolete materials and goods transportation fee, with the following calculation formula: entry tax amount = purchase price (or transportation fee) x deduction rate;
4) As approved by the State Council, on July 1, 1998 on, the deduction rate for the transportation fee for taxable goods purchased or sold by general VAT taxpayers was reduced from 10% to 7%. Entry tax amounts on transportation fees applied for offset after July 1, 1998 are calculated at 7% deduction rate, no matter when the transportation invoice is issued, and whether the stated transportation fee has been paid or not.
(2) Entry tax amounts that can not be used for offset:
1) Purchased fixed assets (refer to Volume 4 for tax refunding for foreign-invested enterprises purchasing domestic equipment);
2) Purchased goods or taxable labor used for non taxable projects;
3) Purchased goods or taxable labor used for duty free projects;
4) Purchased goods or taxable labor used for collective welfare or individual consumption;
5) Purchase goods suffering from abnormal losses;
6) Purchased goods or taxable labor consumed on the goods in progress or finished goods suffering from abnormal losses.
Exit tax amount
The exit tax amount refers to the VAT amount calculated in accordance with the sales volume and VAT rate, that are received from the goods purchaser or receiver of the taxable labor by the taxpayer for the goods sold or taxable labor provided by it.
(1) Calculation formula:
Exit tax amount = sales volume x tax rate or exit tax amount = constituent tax calculation price x tax rate
(2) Calculation of the sales volume for the exit tax amount:
It refers to the total price and the charges beyond the price (not including the exit tax amount received) received from the purchaser by the taxpayer for the goods or taxable labor it sells or provides.
Payable tax amount
The payable tax amount is the balance resulting from offset of the current entry tax amount by the current period exit tax amount.
Calculation formula:
Payable tax amount = current exit tax amount–current period entry tax amount
If the current exit tax amount is smaller than the current entry tax amount and therefore can not offset it, the deficiency can be carried onto the next period for further offset.
5. Tax payment location
(1) A fixed business operator shall apply for and pay the tax to the taxation authority at the location of its organization. If the HO and the affiliate are not in the same county (city), they shall do so to the taxation authorities of their locations respectively.
(2) A fixed business operator selling goods in other counties (city), shall apply to the taxation authority at the location of its organization for issuance of a taxation administration certificate for business operation in other areas, and shall apply for and pay the tax to the taxation authority at the location of its organization.
(3) A non-fixed business operator selling goods or taxable labor, shall apply for and pay the tax to the taxation authority at the location of such sales business.
(4) For imported goods, the importer or its agency shall apply for and pay the tax to the customs at the location of declaration.
6. Tax obligation and time for tax payment
(1) In the case of sales of goods through direct receipt of the money, on the same date when the selling price or the voucher for inquiry after such sales price is received and the bill of landing is delivered to the buyer, whether the goods has been delivered or not;
(2) In the case of sales of goods through collection payment and bank consignment, on the same date when the goods are delivered and collection procedure is completed;
(3) In the case of sales of goods through credit sale and installments, on the same date as the receiving date specified in the contract;
(4) In the case of sales of goods through prepayment, on the same date when the goods are delivered;
(5) In the case of sales on a commission basis by other taxpayers, on the same date when the consignment list is received from the consignee;
(6) In the case of sales of taxable labor, on the same date when the labor is provided and the sales money or the voucher for inquiry after the sales money is received;
(7) In the case of such actions of the taxpayer as is deemed as sales of goods, on the same date when the goods are shifted.
The time for VAT payment is 1, 3, 5, 10, 15 days or one month, respectively. The specific time for tax payment of the taxpayer is to be verified by the competent taxation authority depending on the size of the payable tax of the taxpayer. Those that can not pay the tax on the base of a fixed period, can do so in lots.
(In the case of one month time for tax payment, the taxpayer shall apply for and pay the tax within 10 days after expiration; in the case of 1, 3, 5, 10 and 15 days as the time for tax payment, the taxpayer shall prepay the tax within 5 days after expiration, and shall apply for and pay the tax, and settle the payable tax for the previous month within the first and tenth days of the following month).
For imported goods, the taxpayer shall pay the tax within 7 days after the day following issuance of the tax payment certificate by the customs.
For exported goods, the taxpayer shall complete the tax refund procedure for the goods at the taxation authority on a monthly basis.