Circular on Interpretation of a Relevant Article of the «Implementing Rules for the PRC Tentative Regulations on Consumption Tax»
关于《中华人民共和国消费税暂行条例实施细则》有关条款解释的通知
If the commissioning party of processing trade sells the products at a price higher than the selling price of the commissioned party, it will not be regarded as a direct sale and does not incur consumption tax.
(Issued by the Ministry of Finance and the State Administration of Taxation on July 13 2012, and effective as of September 1 2012.)
(财政部、国家税务总局于二零一二年七月十三日公布，自二零一二年九月一日起施行。)
Cai Fa [2012] No.8
财法[2012] 8号
Finance departments (bureaux) and offices of the State Administration of Taxation of the provinces, autonomous regions, municipalities directly under the central government and cities with independent development plans, and the Financial Bureau of the Xinjiang Production and Construction Corps:
各省、自治区、直辖市、计划单列市财政厅（局）、国家税务局，新疆生产建设兵团财务局：
The second paragraph of Article 7 of the Implementing Rules for the PRC Tentative Regulations on Consumption Tax (Order of the MOF No.51) specifies that, “If taxable consumer goods processed pursuant to a commission are sold directly, they shall not be subject to the payment of consumption tax.” We hereby interpret the meaning of this provision as follows:
《中华人民共和国消费税暂行条例实施细则》（财政部令第51号）第七条第二款规定，“委托加工的应税消费品直接出售的，不再缴纳消费税”。现将这一规定的含义解释如下：
The sale by the commissioning party of the recovered taxable consumer goods at less than the commissioned party's price for taxation purposes is deemed a direct sale and does not incur consumption tax. The sale by the commissioning party at greater than the commissioned party's price for taxation purposes is not a direct sale and requires the filing of a return and payment of consumption tax in accordance with provisions. When calculating tax, the commissioning party is permitted to deduct the consumption tax withheld by the commissioned party.
委托方将收回的应税消费品，以不高于受托方的计税价格出售的，为直接出售，不再缴纳消费税；委托方以高于受托方的计税价格出售的，不属于直接出售，需按照规定申报缴纳消费税，在计税时准予扣除受托方已代收代缴的消费税。
These provisions shall be effective as of September 1 2012.
clp reference:3230/12.07.13prc reference:财法 [2012] 8号promulgated:2012-07-13effective:2012-09-01本规定自2012年9月1日起施行。
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