Value-Added Tax -Scope of Taxation

China Taxation Service
Hotline: 86-755-82143348 Email: amyhuang@citilinkia.com

The taxation scope of some goods is as follows:

（1）The goods futures （including commodity futures and precious metal futures） are subject to value-added tax.

（2） The selling of gold and silver by banks is subject to value-added tax.

（3）The financial leasing is not subject to value-added tax， no matter whether the ownership of the leased goods has been transferred to the leasees.

（4）If the cement prefabrications， other components or building materials produced in the factories and workshops attached to the units engaged in capital construction or to the enterprises engaged in construction and installation are used for the construction projects of these units or enterprises， value-added tax shall be levied when they are moved for use. However， if the prefabrications produced at the construction sites are directly used for the construction projects of these units or enterprises， they are not subject to value-added tax.

（5） The selling of dead pawns by the pawn-broking industry and the selling of consigned goods by the consignment industry on behalf of the consignors are all subject to value-added tax.

（6） The selling of master films， master videos and master cassettes arising from the transfer of copyrights and also the selling of computer software products arising from the transfer of the ownership of patented and unpatented technologies are not subject to value-added tax.

（7） The supply or extraction of unprocessed natural water （for example， the reservoirs supply water for agricultural irrigation and the factories extract groundwater for production） are not subject to value-added tax.

（8） The selling of collectible stamps and first-day covers by the postal departments is subject to value-added tax.

（9）Sewing is subject to value-added tax.

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