State Council, PRC Tentative Regulations on Value-added Tax (Revised)

国务院中华人民共和国增值税暂行条例 (修订)

December 18, 2008 | BY

clpstaff &clp articles &

VAT system changed from production-based to consumption-based.

Clp Reference: 3220/08.11.10 Promulgated: 2008-11-10 Effective: 2009-01-01

Promulgated: November 10 2008
Effective: January 1 2009

Main Contents: According to the revised Regulations, the following input tax amounts may not be deducted from the output tax amounts:

(1) purchases of goods or taxable services used for items not subject to value-added tax, items exempt from value-added tax, collective welfare or personal consumption;

(2) purchases of goods in respect of which extraordinary losses are incurred, and related taxable services;

(3) purchases of goods or taxable services used for goods in process or finished products in respect of which extraordinary losses are incurred;

(4) consumer goods used by taxpayers themselves as specified by the State Council's departments in charge of finance and tax; and

(5) freight charge for the goods specified in Items (1) to (4) of this Article and freight charge for goods sold duty free (Article 10).

clp reference:3220/08.11.10(1)prc reference:国务院令第538号promulgated:2008-11-10effective:2009-01-01

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