Units and individuals engaged in retail business of gold, silver and jewellery within the territory of People's Republic of China (PRC) are taxpayers of consumption tax on gold, silver and jewellery. The scope of gold and silver ornaments subject to consumption tax in retail links is limited to: gold, silver and gold-based and silver-based alloy ornaments, as well as gold, silver and gold-based and silver-based alloy inlaid ornaments.

Consumption tax is not levied on jewelry and jadeite retail, but value-added tax is levied on production, and the tax rate is 10%. However, gold and silver and gold-based and silver-based alloy jewelry, as well as gold and silver and gold-based and silver-based alloy inlaid jewelry, including diamonds and diamond jewelry, are subject to consumption tax at the retail level, and the tax rate is 5%.

Consumption tax is a tax levied on specific consumer goods and belongs to the category of turnover tax. On the basis of the general collection of value-added tax on goods, in order to adjust the product structure, guide the consumption direction and ensure the national fiscal revenue, consumption tax is levied on some consumer goods.

The scope of consumption tax collection mainly includes: cigarettes, alcohol, firecrackers, fireworks, cosmetics, refined oil, precious jewels and jade, golf balls and equipment, high-end watches, yachts, wooden disposable chopsticks, solid wood floors, motorcycles, automobiles, batteries, paints and other tax items, and some tax items are subdivided into several subheads.

Characteristics of consumption tax:

1, consumption tax items are selective. Consumption tax is levied on specific products stipulated in the tax law. That is, according to the requirements of macro-industrial policy and consumption policy, the state can select some consumer goods with a purpose and focus to levy consumption tax, thus appropriately limiting the consumption demand of some special consumer goods, so it can be said that the tax adjustment of consumption tax is special;

2. Design different tax rates according to different products, and pay the same tax for the same product;

3. Consumption tax is an in-price tax and an integral part of price;

4. Consumption tax is levied in three ways: ad valorem rate, specific quota and specific compound:

(1) Taxable amount ad valorem = sales * applicable tax rate;

(2) Taxable amount calculated by quantitative quota method = sales quantity * unit tax amount.

5. The consumption tax collection link is single;

6. The burden of consumption tax is finally passed on to consumers.

To sum up, consumption tax is a turnover tax levied on units and individuals engaged in the production and import of taxable consumer goods in China, and an indirect tax levied on specific consumer goods and specific consumption behaviors.

Legal basis:

Article 2 of the Provisional Regulations of People's Republic of China (PRC) on Consumption Tax.

The tax items and tax rates of consumption tax shall be implemented in accordance with the schedule of consumption tax items and tax rates attached to these regulations.

The adjustment of consumption tax items and tax rates shall be decided by the State Council.

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Taxpayers operating consumer goods subject to consumption tax at different rates (hereinafter referred to as taxable consumer goods) shall separately account for the sales and quantity of taxable consumer goods at different rates; If the sales volume and quantity are not accounted separately, or taxable consumer goods with different tax rates are sold as complete sets of consumer goods, the higher tax rate shall apply.