Notice of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China on Printing and Distributing Notes on Business Tax Items (Trial Draft)No. 149 of the State Administration of Taxation stipulates that the sports industry refers to the business of holding various sports competitions and providing places for sports competitions or activities. Therefore, for gymnasiums and other places that provide sports activities, the income obtained is subject to business tax under the tax item of "culture and sports industry", and the tax rate is 3%. The sale of functional drinks and food in the gym is a part-time activity, which requires VAT.