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 moves out of COVID-19 restrictions.
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The affected businesses include:
- Life sciences;
- Telecoms, internet services
- IT services
- Logistic and related;
- Cultural and sports services;
- Radio, film and TV;
- Logistics and ancillary services, certification;
- Research and development
- Consulting, and business support services;
- Education and healthcare;
- Travel and entertainment services; and
- Catering and accomodation
- Accommodation services
- Other services considered to be within the life services industry.
The enhanced deductibility, launched in 2019, has already been extended from December 2021. But was prolonged to December 2022 last Spring. The latest statements for the State Executive does not say for how long this new extension will be – but likely into the second half of 2023.