Tax Rate for Sales of Office Chairs

The tax rate for sales of office chairs is determined based on the taxpayer's identity and the specific circumstances of the sales activity, primarily divided into two categories: general taxpayers and small-scale taxpayers.

General Taxpayers: If the sale of office chairs is recognized as a sales of goods activity, a 13% tax rate is generally applied for issuing value-added tax (VAT) special invoices. If the sales activity constitutes a mixed sale with other services (such as installation services) and the service falls within the scope of construction services, the sales of goods portion is generally still taxed at the 13% rate. For example, if a company sells office chairs and provides installation services, and the installation service is classified as a construction service, the sales portion of the office chairs is taxed at 13%, while the installation service may be taxed at the construction service rate (e.g., 9%), subject to confirmation by the tax authorities.

Small-Scale Taxpayers:

1. Temporary Tax Exemption Policy: According to the Announcement of the Ministry of Finance and the State Taxation Administration on Exempting Small-Scale VAT Taxpayers from VAT, from April 1, 2022, to December 31, 2022, taxable sales income subject to a 3% collection rate for small-scale taxpayers is exempt from VAT. If the taxpayer chooses to forgo the exemption and issue VAT special invoices, taxation is applied at the 3% collection rate.
2. Reduced Collection Rate of 1%: From January 1, 2023, to December 31, 2027, small-scale taxpayers selling office chairs enjoy temporary preferential treatment, with a reduced collection rate of 1% for VAT. For example, in 2023, a small-scale taxpayer selling office chairs, regardless of whether special invoices are issued, can calculate the tax payable at a rate of 1%.
3. Special Circumstances: If a small-scale taxpayer sells office chairs as part of the sale of real estate (e.g., selling office chairs as an attachment to real estate), a 5% collection rate may apply. However, such cases are relatively rare and require assessment based on the specific business model.

Notes:

• The taxpayer's identity (general taxpayer/small-scale taxpayer) is the core basis for determining the tax rate and should be based on tax registration information.
• The applicability of tax rates for mixed sales activities should be considered in conjunction with the nature of the services. It is advisable to consult tax authorities or professional institutions to mitigate risks.
• Temporary policies may change with national tax adjustments, and attention should be paid to the continuation or revision of the latest documents (e.g., Document No. 19 [2023] of the Ministry of Finance and the State Taxation Administration).