Cigars are subject to consumption tax only in the production process, but not in other processes, while value-added tax is levied in all processes of production, wholesale and retail.
Cigars and cigarettes belong to different sub-tax items in consumption tax. According to the regulations, the consumption tax is levied on cigarettes in the wholesale link, so the consumption tax is not levied on cigar wholesale links. At the same time, it should be noted that when the consumption tax is levied on cigarette wholesale, if one wholesaler sells to another wholesaler, it is not necessary to levy consumption tax, as long as it is sold to non-cigarette wholesalers.
What is the scope of consumption tax?
The scope of consumption tax collection includes the following 1 1 consumer goods: cigarettes, wine, cosmetics, skin care products, precious jewels and jade, firecrackers, fireworks, gasoline, diesel oil, automobile tires, motorcycles and automobiles.
The selected consumer goods can be divided into five categories:
The first category, if excessive consumption, will cause harm to human health, social order, ecological environment and other special consumer goods, such as cigarettes, wine, firecrackers, fireworks and so on.
The second category, luxury goods and non-necessities of life, such as cosmetics, precious jewelry and jade jewelry.
The third category is high-energy consumption and high-grade consumer goods, such as motorcycles and automobiles.
The fourth category is non-renewable resource products that will cause environmental pollution during use, such as gasoline and diesel oil.
The fifth category, products with large production and sales volume, sufficient tax sources and certain financial significance, such as skin care and hair care products, automobile tires and so on.
There are two forms of consumption tax rate: one is proportional tax rate; The other is fixed tax rate, that is, unit tax. The choice of consumption tax rate form is mainly determined according to the situation of tax recipients. For some consumer goods that are basically balanced in supply and demand, with little price difference and standardized units of measurement, choose a simple and fixed tax rate, such as yellow wine, beer and refined oil. For some consumer goods with prominent contradiction between supply and demand, large price difference and irregular measurement unit, we should choose the proportional tax rate linked to tax price, such as cigarettes, wine, cosmetics, skin care products, firecrackers, automobile tires, precious jewels and jade, motorcycles and automobiles.
I hope the above content can help you. Please consult a professional lawyer if you have any other questions.
Legal basis: Provisional Regulations of People's Republic of China (PRC) on Value-added Tax.
Article 1 Units and individuals selling goods or processing, repair and replacement services (hereinafter referred to as services), services, intangible assets, real estate and imported goods within the territory of People's Republic of China (PRC) are VAT taxpayers and shall pay VAT in accordance with these Regulations.
Article 2 VAT rate:
(1) Unless otherwise specified in items 2, 4 and 5 of this article, the tax rate of taxpayers selling goods, services, tangible movable property leasing services or imported goods is 17%.
(2) Taxpayers sell transportation, postal services, basic telecommunications, construction and real estate leasing services, sell real estate, transfer land use rights, and sell or import the following goods at the tax rate of 1 1%:
1。 Agricultural products such as grain, edible vegetable oil and edible salt;
2。 Residents' tap water, heating, air conditioning, hot water, gas, liquefied petroleum gas, natural gas, dimethyl ether, biogas and coal products;
3。 Books, newspapers, magazines, audio-visual products and electronic publications;
4。 Feed, chemical fertilizer, pesticide, agricultural machinery, agricultural film;
5。 Other goods specified by the State Council.
(3) Unless otherwise stipulated in Items 1, 2 and 5 of this article, the tax rate for taxpayers selling labor services and intangible assets is 6%.
(4) taxpayers export goods at zero tax rate; However, unless otherwise stipulated by the State Council.
(five) domestic units and individuals cross-border sales of services and intangible assets within the scope of the State Council, the tax rate is zero.
The adjustment of tax rate is decided by the State Council.