China VAT updates exemptions on export services

Sun 14th Sep 2014

China is to implement new categories for determining the exemption rules for export services. The changes apply from October 2014

Businesses supplying export services are required to follow a number of administrative requirements, including applying for exemption status and retaining supporting documentation to demonstrate that the services were exported.

Under the new rules issued by the State Administration of Taxation and Finance Ministry, the following services provided by a Chinese tax payer will be exempt from Chinese VAT when provided outside of the Peoples Republic of China.

  • Oranising live events and conferences
  • Postal services, including services (letters, packages etc) being sent from China abroad
  • Content for broadcast and publishing abroad
  • Transport (sea, land and air) and warehousing services, including services at ports prior to goods etc leaving China
  • Advertising services
  • Telecoms and related data services
  • Consulting, administrative outsourcing, engineering, software development, IP and copyright