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