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Q：
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When will the Interim Regulations on Consumption Tax come into effect?
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A：
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The Interim Regulations on Consumption Tax came into effect on January 1, 2009.
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Q：
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Who is the taxpayer of consumption tax?
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A：
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Units and individuals that produce, consign for processing and import consumer goods as stipulated in the Interim Regulations on Consumption Tax within the territory of the People's Republic of China, as well as other units and individuals determined by The State Council to sell consumer goods as stipulated in the Interim Regulations on Consumption Tax, are taxpayers of consumption tax and shall pay consumption tax in accordance with the Interim Regulations on Consumption Tax.
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Q：
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When do consumption tax taxpayers pay taxes?
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A：
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Taxable consumer goods produced by taxpayers shall be subject to tax when sold by the taxpayers. Taxpayers who produce and use taxable consumer goods for their own purposes and use them for continuous production of taxable consumer goods shall not pay taxes. For other uses, taxes shall be paid upon transfer for use. For taxable consumer goods processed on commission, except where the entrusted party is an individual, the entrusted party shall collect and pay the tax on behalf of the entrusting party at the time of delivery. For taxable consumer goods processed on commission, if the consignor uses them for continuous production of taxable consumer goods, the tax paid is allowed to be deducted in accordance with the regulations. Imported taxable consumer goods shall be taxed at the time of customs declaration for import.
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Q：
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How is the taxable amount for consumption tax calculated?
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A：
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The tax payable for consumption tax is calculated by means of AD valorem rate, specific quantity, or a combination of AD valorem rate and specific quantity. Formula for calculating the tax payable:
The tax payable calculated by the AD valorem rate method = sales amount * proportional tax rate
The tax payable calculated by the specific quota method = sales volume * fixed tax rate
The tax payable calculated under the compound tax calculation method = sales amount * proportional tax rate + sales volume * fixed tax rate
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Q：
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What does consumption tax sales include?
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A：
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Sales amount refers to the total price and extra charges collected by taxpayers from purchasers for the sale of taxable consumer goods.
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FAQ
