China Announces VAT Reform Measures

Posted by Matt Schmitt on 4/2/19 5:00 PM

Beginning on April 1, 2019, the Chinese government implemented value-added tax (VAT) reforms according to a joint announcement released by the Chinese Ministry of Finance (MOF), State Taxation Administration (STA) and General Administration of Customs of China (GACC).

The taxpayers that are subject to the 16-percent VAT rate on their taxable sales or imported goods will enjoy a 13-percent VAT rate, while those who are subject to the 10-percent VAT rate will only need to pay 9 percent. The statement included an extension in the scale of goods and services eligible for input tax deductions as a series of supporting measures for VAT reform.

The VAT deduction rates and export VAT refund rates have changed accordingly.

 

The announcement in English may be found here:

http://english.gov.cn/policies/policy_watch/2019/03/22/content_281476573757920.htm

Original announcement in Chinese may be found here:

http://www.chinatax.gov.cn/n810341/n810755/c4160283/content.html

Topics: China, VAT