The Ministry of Finance and the State Administration of Taxation formally issued a notice On Dec. 15th that preferential policy on publicity culture VAT and business tax will continue to be implemented from Jan. 1st, 2011 to Dec. 13th, 2012.
The notice said for the following publications, implement policy of paying back the 100% front-end value-added tax in publishing link:
——Authority newspapers and journals of organizations at all levels of the Communist Party of China and the democratic parties, authority newspapers and journals of the people’s congress, political consultative conferences, governments, labor unions, the communist youth leagues, the women’s federations and associations for science and technology at various levels, authority newspapers and journals of Xinhua News Agency and authority newspapers and journals of military departments. For authority newspapers and journals of the above-mentions organizations at all levels, refund after collection of VAT should be controlled within the scope of one piece of newspaper and one journal for one organization.
——Newspapers and journals that are specially published for children and text books for primary and middle school students.
——Newspapers and journals that are specially published for the aged.
——Minority publications.
——Braille books and journals.
——Publications published by publishers registered in five autonomous regions, i.e. Inner Mongolia, Guangxi, Tibet, Ningxia and Xinjiang Autonomous Region.
——Other books, newspapers and journals that are listed and stated in the notice, such as Half Month and Legal Daily and so on.
The notice also said that, for other books, journals, audio-visual products, newspapers about international current affairs and politics and external propaganda newspapers and so on that are listed in this notice but not within the scope of 100% refund after collection of VAT, execute policy of paying back the 50% front-end value-added tax in publishing link.
The notice specified that for printing or production business about minority publications and printing business of printing enterprises in Xinjiang Uyghur Autonomous Region listed in this notice, such as Xinjiang Xinhua Printing Factory, the policy of 100% refund after collection of VAT should be carried out.
The notice also defined that, publications locally sold at Xinhua Bookstores and supply and marketing cooperatives in nationwide counties (including county-level cities, districts, prefectures,same below) and cities below the county level shall be exempt from value-added tax. VAT of publications sold locally by distribution group incorporated by Xinhua Bookstores or chain enterprises restructured from original Xinhua Bookstore and counties as well as dealerships below county level will be exempted.
The notice emphasized that ticket income of popular science units and ticket income of popular science activities carried out by party and government departments of county level (including county-level cities, districts, banners) and above county level shall be exempt from business tax and. Sales tax gained from transfer of telecast right of popular science TV productions from foreign units to domestic popular science units shall be exempted.
