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SAT details rules for direct-selling firms' VAT paymentBEIJING, 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 selling companies. 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, [email protected]) |