All corporations and persons engaged in the production, subcontracting for processing or importation of taxable consumer goods within the territory of the People's Republic of China are payers of consumption tax, in accordance with the sales amounts or sales volumes for the taxable consumer goods, which, as a price including tax, is imposed on a selected few consumer goods in the production, subcontracting for processing or importation links, without further imposition in subsequent wholesale, retail and other links.
Scope of Charge
All corporations and persons engaged in the production, subcontracting for processing, retail or importation of taxable consumer goods within the territory of the People's Republic of China.
- Valuable Jewellery and Jade
- Refined Oil
- Motor Vehicle
- Golf Ball and Equipment
- High-end Watch
- Disposable Wooden Chopsticks
- Timber Flooring
Basis of Assessment
It adopts the rate-on-value and the amount-on-volume methods:
- The rate-on-value method is based on the total consideration receivable from the buyer for the taxable consumer goods sold by the taxpayer, excluding value added tax payable on sales
- The amount-on-volume method is based on the sales volume of taxable consumer goods sold by the taxpayer
Computation of Tax Payable
Intermediate Links of Taxation
- The production link
- The importation link
- The retail link (of gold, silver, jewelry, diamond industry)
- Foreign-trade enterprises empowered to manage exportation are entitled to free export and refund
- Productive enterprises empowered to manage exportation which export on their own or entrust foreign-trade enterprises to export on their behalf are entitled to free export but no refund
- Other commercial enterprises which export taxable consumer goods are not entitled to exemption or refund of tax
Consumption tax payable by enterprises that produce saloon cars, land rover and minibuses with low pollution emission is reduced by 30%
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