Article 4 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-added Tax stipulates that "the following acts of units or individual industrial and commercial households shall be regarded as selling goods:

(1) Entrusting the goods to other units or individuals for consignment;

(2) Consignment of goods;

(3) Taxpayers with more than two institutions and unified accounting transfer goods from one institution to other institutions for sale, unless the relevant institutions are located in the same county (city);

(4) Non-VAT taxable items using self-produced or entrusted goods;

(five) the goods produced or commissioned for processing are used for collective welfare or personal consumption;

(6) Providing goods produced, processed or purchased as investment to other units or individual industrial and commercial households;

(7) Distributing goods produced by oneself, processed on commission or purchased to shareholders or investors;

(8) Giving the goods produced, entrusted or purchased to other units or individuals free of charge.