China cuts VAT rates 1 May 2018
China is to lower a range of its VAT rates from 1 May 2018, costing €53billion per annum.
The VAT rate on manufacturing supplies will be cut from 17% to 16%. The rate on construction, voice telecoms and transportation will be reduced from 11% to 10%. Further reforms will consolidate the existing 13% rate on agriculture into the new 10% rate. This will leave two standard VAT rates.
The VAT registration threshold will also rise to Yuan 5million for small industrial and commercial businesses.
The Chinese VAT system was overhauled between 2012 and 2016. This including phasing out Business Tax.
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