5. Business with several business lines
5.1 Multiple sales activities
For a business having business lines that subject to different business tax rates, the tax should be calculated with the applicable tax rate for related business if there is a clear bookkeeping for separate business lines. If not, the whole business turnover of the entity is subject to the highest business tax rate among the business lines.
S2 Mixed sales activity
If a manufacturer, wholesaler or retailer conducts a sales transaction that involves taxable services and goods, it is treated as sales of goods and is not subject to business tax, but value added tax. For other kind of taxpayer, it is treated as provision of service and subject to business tax. The collecting offices under the State Administration of Taxation have the authority to determine whether it should be taxed under business tax or not.
5.3 Mixed taxable and non-taxable activities
For a business which runs different business lines with income subject to BT or VAT, the tax should be calculated with the applicable tax rate for the taxable activities if there is a clear bookkeeping for the separate business activities. If not, the whole business turnover of the entity is subject to value added tax. The collecting offices under the State Administration of Taxation have the authority to determine whether the taxable services are under the value added tax or not.