China VAT rate simplifications
China’s tax authorities have confirmed to proposals to reduce the number of VAT rates from 4 to 3. Goods such as farm produce, water, coal and gas will be reclassified from 13% to 11%.
The new three-rate band – 17%, 11% and 6% – will come into effect on 1 July 2017.
The annual VAT registration threshold will also rise to Yuan 500,000 from the current Yuan 300,000.
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