SAT details rules for direct-selling firms' VAT payment
BEIJING, Jan 28, 2013 (Xinhua via COMTEX) --
The State Administration of Taxation
(SAT), China's top taxation watchdog, Monday specified rules
regarding value-added tax (VAT) payment by the country's direct
According to a statement on SAT website, the measures, dated on
January 17, will take effect from March 1.
According to current regulations, VAT taxpayers, including
enterprises and individuals, should pay VAT on the basis of revenues
derived from their sales of goods or provision of certain services.
For a direct selling company who first sells goods to its
individual sales agents, the company's taxable sales turnover should
include sales of goods and other fees it earns from individual sales
agents. Individual sales agents who eventually sell goods to
end-customers should also pay VAT.
For a direct selling company who recruits individual direct
sellers to sell goods directly to end-customers, the company's
taxable sales turnover should include sales of goods and other fees
it earns from end-customers. (Edited by Ding Lei,
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