Article 1
　　All units and individuals engaged in the sales of goods， provision of processing， repairs and replac ement services， and the importation of goods within the territory of the People"s Republic of China are taxpayers of Value-Added Tax （heteinafter referred to as "taxpayers"），and shall pay VAT in acco rdance with these Regulations.
Article 2
VAT rates:
(1)For taxpayers selling or importing goods, other than those stipulated in items (2) and (3) of this Article, the tax rate shall be 17%.
(2)For taxpayers selling or importing the following goods, the tax rate shall be 13%:
i.Food grains, edible vegetable oils;
ii. Tap water, heating, air conditioning, hot water, coal gas, lipuefied petroleum gas, naturalgas,methane gas, coal/charcoal products for household use;
iii. Books, newspapers, magazines;
iv. Feeds, chemical fertilizers, agricultural chemicals, agricultural machinery and covering plastic film for farming;
v. Other goods as regulated by the State Council.
(3)For taxpayers exporting goods, the tax rate shall be 0%, except as otherwise stipulated by the S-tate Council.
(4)For taxpayer providung processing, repairs and replacement services (hereimafter referred to as"t-axables services"), the tax rate shall be 17%.
Any adjustments to the tax rates shall be determined by the State Council.
Article 3
　　For taxpayers dealing in goods or providing taxable services with different tax rates shall be acco -unted for separately. If the sales amounts have not been accounted for separately， the higher tax r -ats shall apply.
Article 4
　　Except as stipuated in Article 13 of these Regulations， for taxpayers engaged in the sales of goods or the provision of taxable services （hereinfter referred to as "selling goods or taxable services"）， the tax payable shall be the balance of output tax for the period after deducting the input tax f or the period. The formula for computing the tax payable is as follows：
　　Tax payable=Output tax payable for the period-Input tax for the period If the output tax for the period is less than and insufficient to offset against the input tax for t -he period， the excess input tax can be carried forword for set-off in the following periods.
Article 5
　　For taxpayers selling goods or taxable services， the output tax shall be the VAT payable calculated based on the sales amounts and the tax rates prescribed in Article 2 of these Regulations and collec ted from the purchasers， The formula for computing the output tax is as follows：
Output tax=Sales amount*Tax rate
Article 6
The sales amount shall be the total consideration and all other charges receivable from the purchasers by the taxpayer selling goods or taxable services, but excluding the output tax collectible,
　　The sales amount shall be computed in renminbi. The sales amoumnt of the taxpayer settled in foreig n currencies shall be converted into renminbi according to the exchange rate prevailing in the forei gn exchamge market.
Article 7
Where the price used by the taxpayer in selling goods or taxable services is obviously low and without proper justification , the sales amount shall be determined by the competent tax authorities.
Article 8
For taxpayers who purchase goods or receive taxable services (hereibafter referred to as "purchasing goods or taxable services"), VAT paid or borne shall be the input tax.
　　The amout of input tax that can be credited against the output tax， other than the situations specif ied in Paragraph 3 of this Article， shall be restricted to the amount of VAT payable as indicated on the following VAT credit document：
(1)VAT indicated in the special VAT invoices obtained from the sellers;
(2)VAT indicated on the payment receipts obtained from the customs office.
　　The cteditable input tax for the purchasing of tax exempt agricultural products is calculated based on adeemed deduction rate at 10% on the actual pur chasing price. The formula for calculating the inp -ut tax is as follows：
Input tax = Purchasing price * Deduction rate
Article 9
　　Where taxpayers purchasing goods or taxable servic es have not obtained and kept the VAT ctedit docum ent in accordance with the regulations， or the VAT payable and other relevant items in accordance wit h the regulations are not indicated on the VAT cre dit document， no input tax shall be ctedited again st the output tax.
Article 10
Input tax on following items shall not be creditedagainst the output tax:
(1)Fixed assets purchased;
(2)Goods purchased or taxable services used for no-n-taxanle items;
(3)Goods purchased or taxable services used for gr-oup welfare or personal consumption;
(4)Goods purchased or taxable services used for group welfare or personal consumption;
(5)Abnormal losses of Goods purchased;
(6)Goods purchased or taxable services consumed in the production of work-in-progress or finished goods which suffer abnormal losses.
Article 11
　　Small-scale taxpayers engaged in selling goods or taxable services shall use a simplified method for calculating the tax payable.
　　The ctiteria for small-scale taxpayers sell be reg -ulated by the Ministry of Finance.
Articke 12
The rate leviable on the small-scale taxpayers goods or taxable services shall be 6%.
Any adjustment to the leviable rate shall be determined by the State Council.
Anticle 13
　　For small-scale taxpayers selling goods or taxable services， the tax payable shall be calculated bas ed on the sales amount and the leviable rate presc ribed on Article 12 of these Regulations. No input tax shall be creditable.The formula for calculati ng the tax payable is as follows：
　　Tax payable = Sales amount * leviable rate.
　　The sales amount shall be determined on accordancewith the stipulations of Article 6 and Article 7 of these Regulations.
Article 14
　　Small-scale taxpayers with sound accounting who ca -n provide accurate taxation information may，upon the approval of the competent tax authorities， not be treated as small-scale taxpayers， The tax paya ble shall be conmputed pursuant to the relevant st -ipulations of these Regulations.
Article 15
　　For taxpayers importing goods， tax payable shall b e computed based on the composite assessable price and the tax rates prescribed in Article 2 of thes e Regulatoins. No tax will be credited. The formul as for computing the composite assessable price an d the tax payable are as follows：
　　Composite assessable price = Customs dutiable value + Customs Duty + Consumption Tax Tax payable = Composite assessable price * Tax rate
Article 16
The following items shall be exempt from VAT:
(1)Self-produced agricultural products sold by agricultural producers;
(2)Contraceptive medicines and deviced;
(3)Antique books;
(4)Importation of instruments and equipment directly used in scientific research, experiment and education;
（5）Importation of materials and equipment from for eign goverments and international organizations as assistance free of charge；
　（6）Equipment and machenery required to be imported under contract processing， contract assembly and compensation trade；
　（7）Articles imported directly by organizations for the disabled for special use by the disabled；
　（8）Sale of goods which have been used by the selle rs.
　　Excipt as stipulated in the above paragrph， the VA -T exemption and reduction items shall be regulate d by the State Council. Local governments or depar tments shall not regulate any tax exemption or red uction items.
Article 17
　　For taxpayers engaged in tax exempt or tax reduced items， the sales amounts for tax exempt or tax red uced items shall be accounted for separately， If t he sales amounts have not been separately accounte d for， no exemption or reduction is allowed.
Article 18
　　For taxpayers whose sales amounts have not reached the VAT minimum threshold stipulated by the Minist ry of Finance， the VAT shall be sxempt.
Article 19
The time at which a liability to VAT arises is asfollows:
　　（1）For sales of goods or taxable services， it is t he date on which the sales sum is received or the documented evidence of right to collect the sales sum is obtained.
　　（2）For importation of goods， it is the date of imp -ort declaration.
Article 20
　　VAT shall be collected by the tax authorities.VAT on the importation of goods shall be collected by the customs office on behalf of the tax authoritie -s.
　　VAT on self-used articles brought or mailed into C -hina by individuals shall be levied together with Customs Duty. The detailed measures shall be form -ulated by the Tariff Policy Committee of the Stat -e Council together with the relevant departments.
Article 21
　　Taxpayers selling goods or taxable services shall issue special VAT invoices to the purchasers. Sale -s amounts and output tax shall be separately indi cated in the special VAT invoices.
　　Under one of the following situations， the invoice to be issued shall be an ordinary invoice rather t han the special VAT invoice：
　　（1）Sale of goods or taxable services to consumers；
　　（2）Sale of VAT exempt goods；
　　（3）Sale of goods or taxable services by small-scal e taxpayers.
Article 22
The place for the payment of VAT is as follows:
　　（1）Businesses with a fixed establishment shall rep ort and pay tax with the local competent tax autho rities where the establishment is located. If the head office and branch are not situated in the sam e county （or city ）， they shall report and pay tax separately with their respective local competent tax authorities. The head office may， upon the app roval of the State Administration for Taxation or its authorised tax authorities， report and pay tax on a consolidated basis with the local competent tax authorities where the head office is located.
（2）Businesses with a fixed establishment selling g oods in a different county （or city ） shall apply for the issuance of an outbound business activitie s tax administration certificate from the local co -mpetent tax authorities where the establishment i s located and shall report and pay tax with the lo cal competent tax authorities where the establishm ent is located. Businesses selling goods and taxab le services in a different county （or city ） witho ut the outbund business activities tax administrat ion certificate issued by the local competent tax authorities where the establishment is located， sh all report and pay tax with the local competent ta -x authorities where the sales activities take pla ce. The local competent tax authorities where the establishment is located shall collect the overdue tax which has not been reported and paid to the lo cal competent tax authorities where the sales acti vities take place.
（3）Businesses without a fixed base selling goods o -r taxable services shall report and pay tax with the local competent tax authorities where the sale s activitees take place.
（4）For importation of goods， the importer or his a gent shall report and pay tax to the cuetoms offic e where the imports are declared.
Article 23
　　The VAT assessable period shall be one day， three days， five days， ten days， fifteen days or one mon th. The actual assessable period of the taxpayer s hall be determined by the competent tax authoritie s according to the magnitude of the tax payable of the taxpayer； tax that cannot be assessed in regul ar periods may be assessed on a transaction-by-tra nsaction basis.
　　Taxpayers that adopt one month as an assessable pe riod shall riprort and pay tax within ten days fol lowing the end of the period.If an assessable peri od of one day， three days， five days， ten days or fifteen days is adopted， the tax shall be prepaid within five days following the end of the period a nd a monthly return shall be filled with any balan -ce of tax due settled within ten days from the fi rst day of the following month.
Article 24
　　Taxpayers importing goods shall pay tax within sev en days after the issuance of the tax payment cert ificates by the customs office.
Article 25
　　taxpayers exporting goods with the appliable 0% ta x rate shall， upon completion of export procedures with the customs office， apply for the tax refund on those export goods to the tax authorities on a monthly basis based on such relevant documents as the export declaration document. The detailed meas -ures shall be formulated by the State Administrat ion for Taxation.
　　Where the return of goods or the withdrawal of the customs declaration occurs after the completion of the tax refund on the export goods， the taxpayer shall repay the tax refunded according to the laws
Article 26
　　The collection and administration of VAT shall be conductedd in accordance with the relevabt regulat ions of the and these R -egulations.
Article 27
　　The collection of VAT from foreign investment ente rprises and foreign enterprises shall be conducted in accordance with the resolutions of the standin g Committee of the National People"s Congress.
Article 28
　　The Ministry of Finance shall be responsible for t he interpretation of these Regulations and for the formulation of the Detailed Rules and Regulations for the Implementation of these Reguations.
Article 29
　　These Regulations shall come into effect from Janu ary 1， 1994， and the promulgated by the State Council on September 18， 1984 shall be repealed on the sam e date.