"State Administration of Taxation on the Issuance” of (Value-added Tax Explanation (1) Notice" ( Guo Shui Fa [ 1995 ] No. 288 ) Article 3, the agents which importing goods are subject to VAT regulations if it alleges that they are purchasing goods. Purchasing goods shall be taxed according to the VAT regulations. But in view of the customs, for the value of the imported goods, the agent will issue certificate to the principal and some others. Some issued to the trustees for the particularly of the agency of imported goods, the customs duty paid according to these as set out on certificate issued by the tax-payer as VAT payers. i.e. declaration of imported goods, any customs payment for the certificate issued to the commissioning party do not levy VAT on the agency side; whatever it is the customs payment certificate issued to the agent side, the proxy party should require to increase the VAT.
Guo Shui Fa [ 1995 ] No. 288, whether the file was lapsed on 1 January 2009 ? Whether the advance in payment for purchasing goods can pay sales tax and no longer be subjected to VAT? Customs agent issued the imported goods declarations and tax payment certificates that have Principal and Agent, at the commissioning party payment certificate, it issues the customs certification and deductible under the premise of advance payment to the agent. The agent which imported goods are allowed to pay sales tax and is no longer be subject to VAT?
Taxation issue about purchasing goods: "Ministry of Finance, State Administration of Taxation on VAT, business tax policies and regulations of the notice" ( Cai Shui Zi [ 1994 ] No. 26 ) it provides: For the action of purchasing goods, if it meets the following conditions, it does not levy value-added tax; if it does not meet the following conditions, regardless of how the accounting requirements, is subject to VAT:-
- 1. A Trustee which do not have advance funds ;
- 2. A seller issued invoice to the principal, the trustees will forward the invoice to the Principal ;
- 3. A trustee which is received by the seller, the sale and the VAT (in case of the imported goods, it is collected by customs agents for the VAT amount) with the principal settlement payment and handling fee.
Taxation on imported goods: "The State Administration of Taxation” on issuance of "Value-added Tax Explanation (1) Notice” ( Guo Shui Fa [ 1995 ] No. 288 ) it provides that the imported goods’ agents’ behavior are subject to VAT Ordinance, which is also known as the purchasing goods act, and it shall be taxed at VAT for purchasing goods according to the thee regulations. But in view of the customs value of imported goods, the agent certificate issued to the principal. Some others issue to the trustees of particularly agency for imported goods, the customs duty pays on the certificate issued by the taxpayer as VAT payers. i.e. for a declaration on imported goods, any customs payment certificate issued to the commissioning party do not levy VAT on the agency side; whatever it is the customs payment certificate issued to the agent side, the proxy party should be required to increase VAT.
"State Administration of Taxation on Strengthening for Payment of Import VAT Tax Deduction Management Notice" ( Guo Shui Fa [ 1996 ] No. 32 ) it provides that, for import VAT, it collects customs according to the duty paid. There are two marked one on the unit name, i.e. both the agent import unit name and the name of the importers that have entrusted, the other one is the only allowed for payment for which the original made a unit tax deductible.
According to the above provisions, the trustees purchase goods for advance payment, if the purchasing goods do not meet the conditions, no matter how the provisions of the accounting system are, the Trustee shall pay VAT. Agents of imported goods shall pay the customs duty according the certificate issued by the taxpayer for the VAT payers. If the Imported VAT as collected by customs is opened, according to the VAT payment book, it has two units indicated on the name which achieves the only allowed payment of a flat tax for deduction the original.