Actions deemed to be Sale of Goods

"Provisional Regulations of the PRC VAT" Ministry of Finance State Administration of Taxation Decree No. 50,

Article 4: The individual business units or the following actions shall be regarded as sale of goods:-

  • 1. to deliver the goods to other units or individuals for consignment;
  • 2. Sales of consignment goods;
  • 3. two or more institutions but a unified account of taxpayer, the goods from one institution to another for sales, but the related institutions are located in the same county (city) except;
  • 4. The production or processed goods for non-VAT taxable items;
  • 5. It would be self-produced, processed goods for collective welfare or personal consumption;
  • 6. It would be self-produced, processed or purchased as an investment goods supplied to the other units or individual businesses;
  • 7. It would be self-produced, processed or purchased goods to shareholders or investors;
  • 8. It would be self-produced, processed or purchased goods which donates to other units or individuals.