New draft VAT Law consolidates existing rules, adding major reforms to bring into line with OECD guidelines China has issued a new draft VAT Law to consolidate a number of existing VAT regulations, but also to continue the development of the rules inline with the
Struggling economy given tax boost as 3% VAT on small businesses temporarily withdrawn for 2023 and replaced with 1% rate On 9 January 2023, the Chinese Ministry of Finance provided fiscal relief for small businesses by reducing the Value Added Tax rate applicable to small
13 new regions join mandatory e-invoice (e-fapiao) pilot in August 2022; full roll out by 2023 28th Oct 2022 update: the southwestern Chinese province of Sichuan has joined the e-fapiao pilot. China’s State Taxation Administration (‘STA’) is continuing to expand its introduction of the special e-fapiao e-invoice system,
Qualified enterprises have 10% or 15% additional deduction of creditable input VAT into 2023 China’s State Council has indicated that it will extend the right for input credits for a number of key services sectors. The aim is to continue to support businesses as China
Stringent COVID-19 lockdowns lead to VAT break The Chinese Ministry of Finance and State Taxation Administration have confirmed that delivery services will be zero-rated between 1 May and 31 December 2022. This will cover express delivery services of household essentials, aimed at providing some support
Over 500,000 business receive CNY 420 billion (approx €700bn) to boost COVID-hit economy The accelerated release of credits to small businesses and larger corporations in certain sectors is giving large scale liquidity to the economy. The first wave of VAT repayments has been paid over
Temporary exemption from VAT for small businesses as economy struggles to hit growth targets On 24 March 2022, China’s Finance Ministry announced the withdrawal of the 3% VAT rate applied on small businesses. This includes enterprises with annual sales not exceeding CNY 5 million per
2022 – three further provinces join electronic invoicing pilot China’s State Taxation Administration (‘STA’) is continuing to expand its voluntary introduction of the special e-fapiao e-invoice system, based on national invoicing platform, since the last wave of 25 regions joining the pilot in January 2021. These are
Mainland China places the Value Added Tax responsibilities for non-resident sourced digital or electronic onto the Chinese resident customer. This applies to both B2C and B2B. There is no facility for non-residents to register for VAT. Non-resident providers of digital services should consider the likelihood
China has again extended the ability for tech manufacturers to recover input VAT suffered in an effort to support the growth of the sector and exporting. China has traditionally restricted the rights for exporters to recover any Value Added Tax they have incurred in manufacturing.
