For every industry, different kind of exhibition is an important stage for communication between foreign enterprises and the Chinese enterprises. When the foreign enterprises participating or holding a competitive exhibition, if they want to sell their display items or hold a trade fair in China after the exhibition, they need to pay attention to the following two tips.
For every industry, different kind of exhibition is an important stage for communication between foreign enterprises and the Chinese enterprises. When the foreign enterprises participating or holding a competitive exhibition, if they want to sell their display items or hold a trade fair in China after the exhibition, they need to pay attention to the following two tips.
Before getting to know this kind of regulation, the foreign enterprises also need to know the requirements about the displaying items in China, thus it will offer a real propagandistic function through an exhibition. The merchandises that needed to import exhibition goods are as follows:
1) Merchandises displayed in an exhibition;
2) Materials needed for showing machines;
3) Building and decorative materials for setting stage;
4) Motive pictures, slides, video cassettes, instruction books and ads for publicizing an exhibition.
Payment of the Related Value Added Tax
According the first regulation of Provisional regulation of the People's Republic of China on Value added Tax, the foreign enterprises which sells displaying items directly in China after or during the exhibition should pay the VAT stated. Taking such facts into consideration, as the foreign enterprises hasn’t lived in China for a long time and it belongs to occasional taxable activity, as well as the limited sales items. Therefore, the above-mentioned sales items can be imposed by the rate 6% of the small-scale tax-payers.
Imposition of Business Income Tax
A few of the sales displaying items can be exempted from Business Income Tax payment. The act of foreign enterprises’ participation in Chinese trade fair and the sales behavior should pay the Business Income Tax as a commercial space. For the exception of amount of taxable income checking difficulty, it should be checked at the rate of no less than 10% of the sales proceeds.