STA Clarifies Issues Concerning the Levy of Consumption Tax on Beer

Recently, the State Taxation Administration (STA) has issued the Announcement on Issues Concerning the Levy of Consumption Tax on Beer (the "Announcement"), which shall take effect on April 1, 2026.

The Announcement provides that, for beer sold by beer manufacturers (the "manufacturers"), the consumption tax payable shall be determined based on the higher of the ex-factory price of the manufacturer and the external selling price of its affiliated sales entities, and the unit tax amount of consumption tax on such beer shall be determined accordingly. According to the Announcement, the ex-factory price and the external selling price shall be calculated as weighted average prices by brand and specification, with the formulas as follows: ex-factory price = monthly sales amount of the manufacturer ÷ monthly sales volume of the manufacturer; external selling price = total monthly external sales amount of all affiliated sales entities ÷ total monthly external sales volume of all affiliated sales entities.



(Source: https://fgk.chinatax.gov.cn/zcfgk/c100012/c5248635/content.html)

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