In the annual Work Report delivered at the Two Sessions (Chinese People’s Political Consultative Conference and National People’s Congress), Premier Li Keqiang announced further cuts to value-added tax rates.
From 1 April 2019, the following rates shall be effective:
|Sector||Previous rate||New rate|
|Construction and transport (including passenger transport services)||10%||9%|
Although VAT rates for services remain unchanged, an additional input VAT deduction of 10% can be enjoyed from 1 April 2019 to 31 December 2021. This means that VAT payments may be reduced for service industries. It is possible that these VAT changes could heavily impact your VAT calculations and payments. Therefore, it is important to ensure your business is implementing and benefiting from the latest VAT cuts in the most efficient manner.
If you would like more information about value-added tax (VAT)in China or other related corporate matters, send us an email at email@example.com, and we’ll have a Horizons professional contact you.
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