Search Results for: "china vat"

China VAT rate reductions in effect from 1 May

This post is part of Horizons ongoing sharing of important information related to the implementation of China VAT reforms.

China business enterprises within 17% and 11% value-added tax rates subject to a 1% reduction

On the 4 April 2018, the Ministry of Finance and State Administration of Taxation jointly announced (Cai Shui [2018] No. 32) that the VAT rate applicable to manufacturing and trading industry shall be decreased from the current 17% to 16% for transportation, construction and basic telecommunications services; and 11% […]

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A refresher on the Chinese fapiao 发票 (receipt, invoice) — what you need to know

With important policy implementations recently being made by China’s State Administration of Taxation regarding China VAT general invoices, we felt it would be appropriate to offer a Chinese fapio (发票) refresher post — or more accurately, provide a few links to posts explaining the fapio system.

The Chinese fapio is a legal receipt that serves as proof of purchase for goods and services on the Chinese mainland. The fapio is an essential component of Chinese life for both individuals and businesses. To […]

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China’s ambitious 5-year plan to replace Business Tax with VAT

The Notice of Overall Pilot Execution of Transforming Business Tax into Value-added Tax — titled Caishui [2016] No. 36, B2V Reform — was jointly issued by the PRC Ministry of Finance (MOF) and the State Administration of Taxation (SAT) on 18 March 2016. The circular, effective from 1 May 2016, announced the expansion of Value Added Tax (VAT) to several key sectors, including real estate and construction, financial services and insurance and lifestyle services (such as hospitality, food and beverage, […]

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