China VAT lotto takes on rampant fraud

April 12th, 2018

China’s Shanghai trials with a weekly anti-tax fraud cash prize draw for VAT invoices has been declared a success. Since the start of 2018, Shoppers can upload barcodes on their VAT invoices to a phone app for a potential immediate €12.50 (equivalent)  prize. Their invoices are also entered into a weekly draw with a top …


China cuts VAT rates 1 May 2018

March 29th, 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 …


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 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 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 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 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


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 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 …


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 …