China

China extends VAT registration threshold

November 24th, 2017

China’s Ministry of Finance and the State Administration of Taxation have agreed to extend the current VAT registration threshold till 2020. Currently, the exemption from VAT registration of Yuan 30,000 per month is due to expire on 1 January 2018.  It has now been extended until 1 January 2021.


China

China VAT rate simplifications

May 6th, 2017

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 …


China

China small company VAT invoices

March 14th, 2017

The Chinese tax authority has granted the right for small tax payers in key sectors to the right to issue sales invoices without seeking prior approval via the Golden invoice regime. The new easement of the invoicing requirements will apply to companies with annual sales below CNY 90,000 per quarter. China’s Golden Tax System in …


China

China to combine VAT rates

November 27th, 2016

China has indicated that it plans to reduce the number of VAT rates to simplify compliance. This is likely to mean the consolidation of the main 11% and 6% rates – although no details have been provided yet. The current Chinese rates are: 11%  Retail; entertainment; hotel; restaurants; catering services; real estate and construction, telephony …


China

China VAT changes

August 24th, 2016

China is changing a number of minor VAT compliance requirements from 1 September 2016. These include: Gift vouchers and cards are exempt from VAT Extension of the right to file only quarterly VAT returns Update and extension to the VAT tax code listing Services consumed outside of China are exempted from VAT


India

China VAT and India GST rivalries

August 15th, 2016

2016 will go down as the year that the world’s two most populous countries pushed ahead with fundamental indirect tax reforms to boost their internal markets and global rivalry. It is worth contrasting the reforms to see how the implementation of GST and VAT reforms for India and China respectively will work to understand their …


China

China export services VAT exemption

July 18th, 2016

China’s State Administration of Taxation authority has provided further guidance on the application and rules for zero VAT rating on export services. In a new bulletin, it lists all services which are eligible for the VAT zero rating. Typically IP, design and some outsourcing IT and administrative services. Any companies seeking exemption must register as …


China

EU VAT obstacles for Chinese companies

July 7th, 2016

Chinese enterprises trading across the EU can be hindered by many barriers; particularly EU VAT, which can leave unsuspecting firms facing large fines or delays in deliveries. According to figures published by Xinhua, the EU remained China’s biggest trading partner in 2014, with bi-lateral trade reaching $525 billion, representing a 19.5% growth from the previous …


China

China delays new e-commerce tax regime

June 1st, 2016

China is to postpone the full implementation of the new VAT regime on goods purchased by consumers from aboard. This is based on reports of high levels of abandoned shipments at ports by consumers faced with rising entry taxes from May.   Freight forwarders have indicated a drop in over 60% on cross-border sales. As a …


China

China VAT reform stirs global risks

May 11th, 2016

On 1 May 2016, China completed a four-year program to overhaul its antiquated VAT regime and replace its existing Business Tax on services. But the $77 billion tax cut is creating wider economic undercurrents nationally and globally. The new VAT system will give a major boost to the country’s economic ambition to pivot away from …