A draft of the first VAT law in China’s history has been released by the Ministry of Finance and the State Taxation Administration on 27 November for public comments. Although VAT was implemented in 1994, currently it is still governed under the Provisional Regulations. Continue reading
President Trump on August 1 announced via Twitter that, beginning on September 1, the United States will impose additional Section 301 duties of 10% on Chinese-origin products with an annual trade value of approximately $300 billion, covered by List 4.
President Trump had agreed in June not to impose more tariffs while the two sides tried to reach a trade deal, but said August 1 that China has reneged on its agreement to buy agricultural products from the United States in large quantities, and also did not fulfill its commitment to stop the sale of fentanyl into the United States.
The announcement follows the office of the US Trade Representative (USTR)’s May publication of a notice in the Federal Register proposing additional Section 301 duties of up to 25% on the List 4 products. (For prior coverage of the List 4 tariffs, see PwC Insights, USTR proposes more tariffs on long list of China imports, May 15, 2019.)
Products that will be affected by the tariff increase include essentially all products not previously included in Lists 1-3, including all apparel, footwear, and manufactured textile products, as well as common consumer goods such as cellphones, televisions, toilet seats, and pillows. The proposed product list excludes pharmaceuticals, certain pharmaceutical inputs, select medical goods, rare earth materials, and critical minerals. Product exclusions granted by the USTR with respect to Lists 1-3 would not be affected.
Now that President Trump has announced that additional duties on almost all remaining Chinese-origin products will begin in one month, US companies engaging in business with China need to assess their duty exposure. List 4 reinforces the importance of those companies taking action aimed at making their trade function and supply chains as efficient as possible.
Companies in previously unaffected industries need to re-examine their import profiles and supply chains, including the use of available analytical tools, to determine potential impacts and explore mitigation strategies.
For a deeper discussion regarding the Section 301 tariffs and how your business may be able to mitigate risks in the changing trade environment, please contact:
Simeon Probst, Partner
Customs, Trade and Indirect Taxes, PwC Basel
Tel. +41 58 792 53 51
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The EU Quick fixes, i.e. measures aiming to improve the current VAT system applicable as of January 2020 will require businesses to adapt their systems and processes. We will therefore share with you the first observations collected from the various EU countries that have already released their draft legislation and discuss the practical implementation and steps required to check the readiness of your company in connection with those new rules.
As usually, we will provide you also with an overview of worldwide developments including practical experiences from recent VAT audits in Switzerland and interesting ITX news from locations, such as Bangladesh, India and China.
Prior the judiciary holidays, we will present the latest impacting cases issued by the ECJ with particular focus on the input VAT deduction right and the points of attention for businesses to secure those rights, particularly, in supply chain transactions.
Finally yet importantly, we will discuss the trade wars and the resulting increased focus on customs as with the increase in rates the duties become more important as ever. Since experience shows that businesses are often lacking the necessary controls in this area, our Customs specialists will share their insights on the future developments and present the solutions that businesses could implement to assess their actual position and identify potential saving opportunities.
Thursday 20 June 2019
This event is free of charge.
PwC Geneva, Avenue Giuseppe Motta 50, 1202 Genève
- Patricia More, Tax & Legal Services Principal – ITX, PwC Switzerland
- Konstantina (Nadia) Tsiosta, Tax & Legal Services Manager – ITX, PwC Switzerland
- Kristyna Kaniova, Tax & Legal Services Manager – ITX, PwC Switzerland
- Krisztina Nagy, Tax & Legal Services Assistant Manager – ITX, PwC Switzerland
08:00 Welcome & coffee
08:40 VAT Outlook: EU Quick fixes & Latest ITX developments around the globe
09:00 Impacting Case Law
09:20 Customs update: Trade wars & Insights on Customs processes, management & optimization
10:00 Q&A & networking
10:30 End of the event
Find out more and register here >
Image source: unsplash.com
It was confirmed that the standard manufacturing rate of 16% will be reduced to 13%. The transport and construction rate will be reduced from 10% to 9%. The lower rates 6% and 3% will remain unchanged. There might be further changes following shortly in order to simplify the VAT system. Continue reading
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%. Continue reading
On 24 March 2016, the Ministry of Finance (MoF) and the State Administration of Taxation (SAT) jointly released Caishui  No. 36 on the Comprehensive Roll-out of the B2V Transformation Pilot Program (“Circular 36”), under which the real estate and the construction industry will be transformed from business tax (BT) to value-added tax (VAT) (“B2V Reform”) starting on May 1st 2016 (“expansion date”). Continue reading
Chinese Premier Li Keqiang mentioned on Saturday during the National People Congress meeting that B2V will be fully rolled out on May 1, expanding the B2V scope to construction, real estate, financial services and consumer services. Continue reading