The total value of imports and exports for August was 191.7 billion U.S. dollars, a decrease of 20.6 percent compared with the same month last year, but a 2.3 percent increase from July.

Imports stood at USD88 billion, a decrease of 17 percent compared with the same month last year, an increase of 3.4 percent from July.

Exports dropped 23.4 percent from a year earlier to USD103.7 billion but their value rose 1 percent from July.

Source : Konaxis

Reports from CAAM showed that sales of imported vehicles totaled 145,900 units during January to June. The value of imports fell 27 percent to USD 11.9 billion.

There was a 37-percent decline in auto exports in the first half.

On concerns of the fading impact of stimulus measures and an uncertain economic outlook, auto imports will fall for the whole year to about 370,000 units, said an industry insider.

Last year, auto imports gained 40 percent to 410,100 units.

Other analysts believe that the drop is also a result of growing domestic production as car makers tempt buyers with lower-priced vehicles.

China’s vehicle imports grow at an average 28.4 percent annually during 2002 to 2008, beating the 21.1 percent for the overall market.

Source : Konaxis

VAT is the major source of fiscal revenue for the government of China, particularly the central government. In 2007, the revenue from VAT amounted to RMB15.47 billion, accounting for 33.9 percent of China?s total tax revenue for the year ? it accounted for the largest percentage of the China?s annual tax revenues.

The Chinese government rules that all enterprises and individuals engaged in the sale of goods, provision of processing, repairs and replacement services, and import of goods within China shall pay VAT. There are a few exemptions, such as self-produced agricultural products sold by agricultural producers, contraceptive medicines and devices, antique books, importation of instruments and equipment directly used in scientific research, experiment and education, importation of materials and equipment from foreign governments and international organizations as assistance free of charge, articles imported directly by the organizations of the disabled for special use by the disabled, and sale of goods which have been used by the sellers. However, pretty much every business will be liable for this tax.

The VAT rate for general taxpayers is generally 17 percent, or 13 percent for some goods (see table below). For taxpayers who deal in goods or provide taxable services with different tax rates, the sale amounts for the different tax rates shall be accounted for separately. If this is not done, the higher tax rate shall apply.

China VAT calculation for general taxpayers

The VAT payable shall be the balance of output tax for the period, after deducting the input tax for the period. The formula required:

VAT Payable = Output VAT ? Input VAT

Output VAT is calculated based on the value of the taxpayer?s sales, namely
Output VAT = A × B, where A = sales value and B = tax rate

A general taxpayer will usually purchase goods or receive taxable labor services during the course of doing business. The VAT paid by the general taxpayer is Input VAT. The Input VAT is used as a credit against the output tax levied on selling the goods.
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