Michaela Merz

China – reduction of the VAT rate as from 1 of May 2018

Leave a comment

The following was announced by Premier Li, during State Council meeting yesterday, Mar 28.:

Reduction in VAT rate – Manufacturing, etc. VAT rate reduce from 17% to 16%.  Transportation, construction, basis telecom, etc, VAT rate reduce from 11% to 10%.

Expand threshold of Small Scale VAT Payer – The RMB500k and 800k threshold, for industrial and commercial enterprise, being Small Scale VAT Payer will be increased to RMB5m, ie more could be small scale VAT payer.

New pilot related to input VAT refund instead of input VAT credit carry forward – Advance / equipment manufacturer, R&D, etc, power company may apply for refund of input VAT credit, within a certain period of time

The above will be effective from May 1, 2018.  Detail rules and implementation guidelines are expected to be available early part of April.

 

Bildquelle: Cornerstone  / pixelio.de

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s