培训课程
Value Added Tax (VAT) 2
3. DEEMED SALES
The following are deemed as sales of goods:
Consignment of goods to others
Sales of goods under consignment
Transfer of goods between establishments an across cities by a taxpayer who reports its result on a consolidation to tax bureau
Application of self-produced or processed goods for non-taxable usage (Note:
application of purchased goods is not deemed as sales of goods as VAT is normally included in the purchase price already)
Application of self-produced or processed goods for the staff benefits
Contribution of self-produced or processed goods or purchased goods to other enterprises or individual as a form of investment
Distribution of self-produced or processed goods or purchased goods to shareholders or investors
Donation of self-produced or processed goods or purchased goods to others
For the above deemed sales activities, there is normally no sales figure in the transaction or the sales value is obviously low. Then the following methods in order are used to determine the turnover:
(1) The average selling price of the same kind of goods sold by the seller for the month;
(2) The average selling price of the same kind of goods sold by the seller recently; (3) Deemed profit rate (10%) by the following formula:
The composite tax value= Cost of manufacturing or purchase x (1 + 10%)
If the goods are subject to consumption tax as well, the formula is:
The composite tax value Cost of manufacturing or purchase x (1 + Deemed profit rate) ¡Â (1- Consumption tax rate)
Please note that the deemed profit rate for products, which are subject to consumption tax, vary with different kind of goods.
a An enterprise produces two kinds of product A and product B, which is use for
investment, Product A is not required to pay consumption tax, production cost
150,000 dollars (deemed profit rate 10%); product B is required to pay consumption
tax (consumption tax rate 30%), production cost 210,000 dollars (deemed profit rate
8%). Calculate the taxable turnover for the enterprise.
The composite tax value of product A = 150,000 x (1 + 10%) 165,000 dollars
The composite tax value of product B = 210,000 x (1 + 8%) ¡Â (1- Consumption tax rate)
The composite tax value of product B = 210,000 x (1 + 8%) / (1 - 30%) = 324,000 dollars
Therefore, taxable turnover for the enterprise = 165,000 + 324,000 489,000 dollars
The following are deemed as sales of goods:
Consignment of goods to others
Sales of goods under consignment
Transfer of goods between establishments an across cities by a taxpayer who reports its result on a consolidation to tax bureau
Application of self-produced or processed goods for non-taxable usage (Note:
application of purchased goods is not deemed as sales of goods as VAT is normally included in the purchase price already)
Application of self-produced or processed goods for the staff benefits
Contribution of self-produced or processed goods or purchased goods to other enterprises or individual as a form of investment
Distribution of self-produced or processed goods or purchased goods to shareholders or investors
Donation of self-produced or processed goods or purchased goods to others
For the above deemed sales activities, there is normally no sales figure in the transaction or the sales value is obviously low. Then the following methods in order are used to determine the turnover:
(1) The average selling price of the same kind of goods sold by the seller for the month;
(2) The average selling price of the same kind of goods sold by the seller recently; (3) Deemed profit rate (10%) by the following formula:
The composite tax value= Cost of manufacturing or purchase x (1 + 10%)
If the goods are subject to consumption tax as well, the formula is:
The composite tax value Cost of manufacturing or purchase x (1 + Deemed profit rate) ¡Â (1- Consumption tax rate)
Please note that the deemed profit rate for products, which are subject to consumption tax, vary with different kind of goods.
a An enterprise produces two kinds of product A and product B, which is use for
investment, Product A is not required to pay consumption tax, production cost
150,000 dollars (deemed profit rate 10%); product B is required to pay consumption
tax (consumption tax rate 30%), production cost 210,000 dollars (deemed profit rate
8%). Calculate the taxable turnover for the enterprise.
The composite tax value of product A = 150,000 x (1 + 10%) 165,000 dollars
The composite tax value of product B = 210,000 x (1 + 8%) ¡Â (1- Consumption tax rate)
The composite tax value of product B = 210,000 x (1 + 8%) / (1 - 30%) = 324,000 dollars
Therefore, taxable turnover for the enterprise = 165,000 + 324,000 489,000 dollars
