Circular of the Ministry of Finance and the State Administration of Taxation on Value-Added Tax Policies Concerning the Application of Low Tax Rates and Simplified Taxing Method for Certain Goods

Circular of the Ministry of Finance and the State Administration of Taxation on Value-Added Tax Policies Concerning the Application of Low Tax Rates and Simplified Taxing Method for Certain Goods

Cai Shui [2009] No. 9

January 19, 2009

Finance departments (bureaux), offices of the State Administration of Taxation and local taxation bureaux of the provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan, the Finance Bureau of the Xinjiang Production and Construction Corps:

In accordance with the Interim Regulations of the People's Republic of China on Value-added Tax ( Order of the State Council No.538, refer to as the "Regulations" hereinafter) and the Implementing Rules for the Interim Regulations of the People's Republic of China on Value-added Tax ( Order of the Ministry of Finance and the State Administration of Taxation No.50) and relevant principles provided by the State Council, with a view to well connecting policies concerning value-added tax with each other and strengthening the taxation administration, we hereby clarify relevant issues concerning application of low value-added tax rate and simplified taxing method for certain goods as below:

I. The following goods shall continually apply 13% as the value-added tax rate:
1. Agricultural products.
Agricultural products shall mean primary products made of various plants and animals produced in crop cultivation, breeding, forestry, animal husbandry and aquaculture. The specific taxation scope shall tentatively continue to apply the Circular of the Ministry of Finance and the State Administration of Taxation on the Issuance of the Note for Taxation Scope of Agricultural Products (Cai Shui Zi [1995] No. 52) and other relevant regulations in force.
2. Audio and video products
Audio and video products shall mean cassette tapes, video tapes, records, music CDs, video CDs with pre-recorded content, which have been formally publicized.
3.
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