China VAT rates May 2016
China has published the VAT rates for the latest industry sectors to be included in the VAT overhaul and replacement of Business Tax
The new VAT rates, according the to the State Administration of Taxation from 1 May 2016 will be:
- Financial services – 11%
- Consumer services – 6%
- Real estate – 11%
- Construction – 11%
The implementation of VAT on these sectors will include businesses to recover input VAT suffered through the production chain – although details for financial services are still missing.
The reform of Chinese VAT, and withdrawal of Business Tax, started in 2012 with a number of pilot cities. It has since been rolled out across the whole country. The above sectors are the last to be included.