What Is a Turnover Tax?

Commodity turnover tax (goods turnover tax), also known as turnover tax, circulation tax, refers to the taxpayer's commodity production, circulation links or the amount of turnover and non-commodity transaction turnover as a tax object. Turnover tax is the product of commodity production and commodity exchange. Various turnover taxes (such as value-added tax, consumption tax, and customs duties) are important sources of government revenue. ^[1]

Turnover tax

First, with commodity production,

1. Widely raise financial funds.

2. To ensure that the country can obtain fiscal revenue in a timely and stable manner.

3. Regulate production and consumption with prices

The tax law stipulates that foreign-invested enterprises can enjoy the following preferential benefits in turnover tax:

Foreign-invested enterprises invest as joint ventures or within the total investment in accordance with the provisions of the joint venture contract

1. Misalignment of management goals. China

1. Adjust the turnover tax settings to give localities appropriately

Each tax type can start with the characteristics of tax types, the introduction of related regulations, preferential tax policies, analysis of difficult business practices, and sharing of tax planning cases.