13% VAT Charge Revoked as of 1 July
12 May 2017
The current 13% VAT charge will no longer be levied after 1 July this year. Instead, an 11% tax will apply to the sale or import of a number of goods, including agricultural products, drinking water, heating and liquefied petroleum gas (LPG). The change was announced in the Circular on Policies for Simplifying and Consolidating Value-Added Tax (VAT) Rates, jointly issued by the Ministry of Finance and the State Administration of Taxation.
Any foreign trade enterprises that exports goods listed in the Annex of the above-mentioned Circular prior to 31 August 2017 will still qualify for a13% export tax refund, assuming they paid the 13% VAT charge when purchasing the goods. Similarly, any that have paid VAT at the 11% rate will get an 11% refund. In case of any inconsistencies between the earlier provisions and the revised provisions with regard to VAT rates, deduction rates or the specific scope of goods covered, will deemed to be governed by the updated legislation.
For further information, please refer to the following websites:
- Accounting Services
- Business Management & Consultancy