Turnover Tax in China
- Turnover is a tax on activities, and it is an indirect tax which can be shifted from the supply of goods or services to the buyer of goods or services. It encompases value added tax (VAT), business tax (BT), and consumption tax (CT).
- VAT and BT are mutally exclusive, meaning that a single economic transaction is either subeject to VAT or BT. But certain catagory of goods which falls under the scope of VAT, cigarettes for example, also falls under the scope of CT.
Note that under decree no. 691 of the State Council, the PRC Business Tax Tentative Regulations have been repealed since 1st December 2017.