China VAT cuts boost exports to US despite tariff wars

July 12th, 2018

China’s lowering of VAT in May on aluminium exports to the US and rest of the world has helped contribute to a 37% growth sales (source: Chinese Customs, June 2018). This comes despite the US imposing heavy tariffs on aluminium in March, and a spiralling trade war with China and the European Union. Since May …


China cuts VAT on books and journals

June 30th, 2018

China is to cut the VAT rate on books, newspapers, journals, e-publications etc published by the Communist Party to 0%. Publications by other organisations for children and elderly are also to be nil-rated for VAT purposes. All other publications are to benefit from a 50% cut in VAT rate.


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.


Chinese VAT registration

September 29th, 2017

Non-resident companies trading in China Foreign companies not established in China may not register for VAT.  Any goods or services provided by foreign companies to Chinese recipients are generally subject to a withholding VAT on the consideration.  Instead, they should consider incorporating special local entities such as: wholly foreign owned entity (WFOE); or Joint Stock …


Chinese VAT compliance

September 28th, 2017

There are detailed rules controlling the recording and processing of Chinese activities. These include guidelines on: Chinese invoice requirements (including authorised software for producing invoices); Foreign currency reporting and translation; Credit notes and corrections; and The correct format of accounting records. What is the tax point for Chinese VAT? VAT is due on any taxable …


Chinese VAT returns

September 28th, 2017

Once VAT registered, businesses are expected to submit periodic returns detailing VAT transactions and the amounts due – or in credit. Frequency of Chinese VAT returns Most tax payers submit monthly VAT returns by the 15th of the following month. However, some are required to file more regularly when involved in certain business activities. Information …


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 …