The State Taxation Administration issued an announcement on issues related to the calculation of consumption tax for beer.

LightningPacketLoss · 2026-04-04T20:19:22+00:00

The State Taxation Administration recently issued an announcement clarifying the standards for calculating beer consumption tax. The sales price is determined by the higher of the ex-factory price from the manufacturing enterprise and the external sales price of related sales units. The announcement will take effect from April 2026 and will revoke the relevant approval from 2002.

LightningPacketLoss

2026-04-04 20:19:22

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Recently, the State Taxation Administration issued an announcement on issues related to the levy of excise tax on beer. It mentions that, in accordance with the Provisional Regulations of the People’s Republic of China on Consumption Tax and their implementing rules, the relevant issues concerning the levy of excise tax on beer are hereby announced as follows:

I. Beer sold by beer production enterprises (hereinafter referred to as “production enterprises”) shall, for determining the excise tax amount, use whichever is higher between the ex-factory price of the production enterprise and the outward sales price of an associated sales unit. Based on this, determine the unit excise tax amount for the beer.

II. The term “associated sales unit” as used in this announcement refers to units and individuals recognized in accordance with Article 51 of the Implementing Rules of the Law of the People’s Republic of China on the Administration of Tax Collection and the provisions of Article 2 of the Announcement of the State Taxation Administration on Improving Related-Party Declaration and Concurrent Documentation Management (Announcement No. 42 [2016]).

III. The ex-factory price and the outward sales price refer to the weighted average price calculated separately by brand and specification. The calculation formulas are:

Ex-factory price = the production enterprise’s sales revenue for the current month / the production enterprise’s sales quantity for the current month;

Outward sales price = the total outward sales revenue of all associated sales units for the current month / the total outward sales quantity of all associated sales units for the current month.

IV. This announcement shall come into effect on April 1, 2026. At the same time, the State Taxation Administration’s Reply on Issues Concerning the Levy of Consumption Tax on Beer (Guo Shui Han [2002] No. 166) shall be repealed.

(State Taxation Administration website)

(Editor: Lin Chen)

Keywords:

                                                            Beer

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