Retail gold and silver jewelry, diamonds and diamond ornaments are subject to consumption tax. Tax rate: 5%

Tax base

1. Sales excluding VAT: sales of gold and silver jewelry = sales including VAT ÷( 1+ VAT rate 17% or collection rate of 3%)

2. Gold and silver jewelry and packaging materials are sold together, regardless of whether the packaging materials are separately priced or not, and no matter how they are accounted for, they should be incorporated into the sales of gold and silver jewelry and subject to consumption tax.

3. For gold and silver jewelry processed with materials, the tax basis shall be determined according to the sales price of similar gold and silver jewelry sold by the trustee, and the consumption tax shall be levied. If there is no similar sales price of gold and silver jewelry, tax shall be calculated according to the composition of taxable value. The formula for calculating the taxable value of composition is: taxable value of composition = (material cost+processing fee) ÷( 1- consumption tax rate of gold and silver jewelry is 5%).