Excise tax payable = (sales of goods** x applicable tax rate) + number of taxable products x applicable tax rate of taxable products:There are 4 factors that need to be taken into account to calculate the amount of GST payable:
1.Sales** and tax rates on goods. Consumption tax is calculated on the basis of the ** of the goods, so it is necessary to know the actual selling price of the goods sold and the applicable tax rate. According to the provisions of the Provisional Regulations of the People's Republic of China on Consumption Tax, consumption tax is levied on an ad valorem rate or a fixed amount of value. Ad valorem rate refers to the calculation of tax payable based on the ** of the commodity multiplied by the applicable tax rate;The specific amount of tax is calculated according to the actual sales quantity on the basis of determining the unit tax amount. In practice, the ad valorem rate tax calculation method is usually adopted.
2.The quantity of the taxable product. Excise tax is based on the quantity of goods, so it is also necessary to know the specific quantity of goods purchased when calculating the tax payable. According to the regulations, taxpayers shall provide purchase invoices or other legal vouchers to the in-charge tax authorities as the basis for tax calculation. If legal evidence cannot be provided, the number of taxable products can be determined by the average market sales** of similar products.
3.The purpose of the purchased goods. Different goods have different uses, so it is necessary to determine whether or not consumption tax should be paid according to the specific purpose of the goods. For example, consumption tax shall be levied on goods used in the production and manufacture of consumer goods at the prescribed rate;On the other hand, no consumption tax is levied on goods that are not subject to VAT for non-productive use or for continuous processing. In addition, excise duty is no longer levied on goods subject to export tax rebates.
4.The identity of the taxpayer and the applicable tax rate. Excise tax is specific to specific taxpayers, so it is necessary to determine the specific object and rate of taxation. According to the notice of the Ministry of Finance and the State Administration of Taxation on adjusting the consumption tax policy of some products (CS 2018 No. 37), the differentiated tax rate policy will be implemented for some consumer goods, including:
Exemption from excise tax on raw materials and primary products used in the production of green food, organic food, and pollution-free agricultural products;
Implement the policy of levying first and returning later for eligible household appliances going to the countryside and energy-saving household appliances
The consumption tax on cigarettes and cigarettes will be changed from a fixed amount to an ad valorem rate, and the tax rate will be appropriately increased
The consumption tax rate for cosmetics, skin care cosmetics, hair dyes, perfumes, cold perms, mousses, hairsprays, etc., will be increased from 15% to 25%. At the same time, it also implements a consumption tax policy of additional collection on some luxury goods such as high-end watches, precious jewelry and jewelry, golf balls and equipment, and high-end clothing.
To sum up, the formula for calculating the amount of GST payable is as follows:
Excise tax payable = (sales of goods** x applicable tax rate) + number of taxable products x applicable tax rate of taxable products:
Among them, "sales of goods**" refers to actual sales**, "applicable tax rate" refers to the applicable tax rate of consumption tax (generally ranging from 10% to 46%), and "quantity of taxable products" refers to the actual purchase quantity of taxable products.