How To Register for Consumption Tax In China
- Enterprises, their branches, and sites involved in business or production that are established by companies located elsewhere industrial and commercial homes and other institutions involved in business or production (hereinafter all known as taxpayers involved in business or production) must, within thirty days from the time when the license for business is granted make an application to the tax authorities for registration of tax by presenting relevant documents. Tax authorities will within 30 days of the date on which the application is accepted give an tax registration document after exam and verification of documents.
- The departments of administration for commerce and industry must keep tax authorities frequently informed about their treatment of registration and the issuance of business licenses following exam.
Documents Required Register for Consumption Tax
- A commercial and industrial business license or similar business permit
- An agreement, contract, and articles of association
- The unifying organizational code
- A passport, ID card or any other valid ID document from the representative of legal or a responsible owner’s member.
- Other documents and documents are also required by tax authorities of an autonomous region, province or municipal directly under the state council. State Council
Office Locations and Contacts
The State Administration of Taxation Address Yangfangdian Road, Haidian District on the 5th
State Administration for Industry and Commerce People’s Republic of China
Address: 8 Sanlihe Donglu, Xichengqu, Beijing, 100820, P. R. China
What Are All The Eligibility
All companies and individuals engaged with the manufacturing, subcontracting or the processing or importation of tax-deductible consumer goods within the borders of the People’s Republic of China are consumers of consumption tax in accordance with volume of sales or sales for the taxable consumer products that includes tax, is charged to certain consumer goods when subcontracting production, to process or export links without additional taxation on later wholesale, retail, and other links.
- Tax revenue In China is collected, and distributed between the central and local governments. It is the State Administration of Taxation (SAT) is the most powerful fiscal authority of China and is home to SAT offices at municipal and provincial levels that are that are responsible for collecting value-added tax (VAT) as well as business taxes, consumption tax corporate income tax, and other taxation specialized to. Additionally, there are local tax bureaus that report to local governments. They are accountable for the collection of taxes on business, income tax and other taxes that are specialized. Additionally, imports and exports fall under customs duty as well as consumption tax and VAT, which are paid through customs officials from the General Administration of Customs and its affiliates across the country.
- Each company must register at both SAT as well as your local tax authority and Customs as needed. Due to the complexity of the tax structure taxes, the tax regulations may be applied differently by different office and official, and even within different districts of one city. Different offices across different regions could differ in their interpretation of tax laws issued from the federal government and the way they implement them can differ. Consult local tax authorities or trusted service providers to find the most current tax policies for the area you’re located.
- The name and identification number on the passport, ID card, or other acceptable ID document from the institution, its legal representative or the owner
- The address of the business or residence
- The kind of registration
- The accounting system
- The type of production and business operations
- The production scope and operations
- The total value in capital (fund) and investment
- The production term and operation
- The name and phone number of the chief financial officer.
- Other information that is specified in the State Administration of Taxation
The Document is required Register for Consumption Tax
Consumption tax mostly applies to products of high quality and not-necessary and products that could be hazardous to health or the environment (e.g. alcohol, tobacco or fireworks) as well as high-energy consumption and premium products, that are not renewable and non-replaceable petroleum items. The tax rate for consumption can range between 1% and 56 percent.
Information that can be useful
Consumption tax is levied on subcontracting or production for processing or importation the following items:
- Jewellery of the highest quality, precious stones and jade
- Watches of the highest quality
- The alcohol-related drinks, alcohol as well as alcohol
- Firecrackers and fireworks
- Product oils
- Tires on motor vehicles
- Saloon cars
- Golf equipment and golf
Other uses for the document/certificate
Consumption tax is imposed on 14 categories of items that include cigarettes, alcohol beverages, as well as certain luxurious and eco-friendly products. The tax amount is calculated according to the value of the sale or the volume of sales, dependent on the item being sold. Consumption tax isn’t recoverable however it is deductable as an expense to be used for CIT purposes.
Consumption Tax is collected through a specific link, usually for the manufacture, processing, dealing and importation links of tax-exempt consumption products with the exception of the silver and gold jewellery diamonds, diamonds and diamond jewelry that are taxed on retail links. Intermediate Links for Taxation
- The link to production
- The link to import
- A retail connection (of silver, gold, diamonds, jewelry)