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Provisions of New Three-Tier VAT Regime Announced
25 July 2017
In line with its policy of VAT reform, including the abolition of business tax in selected service sectors and the streamlining of the relevant tax bands, the State Council has announced a new three-tier VAT regime. This has seen the previous four-tier system simplified into three (17%, 11% and 6%) as of 1 July this year, with the 13% tax rate scrapped entirely.
Details of the new VAT regime are listed below:
| Category | Taxable Transaction | VAT Rate |
| Sale of goods | Sale or importation of goods (except goods separately listed) | 17% |
| Agricultural products (including food grains), LPG, edible salt, feed and books | 11% | |
| Provision of processing, repair and replacement services | 17% | |
|
Provision of services | Leasing services | 17% or 11% |
| Transportation services | 11% | |
| Postal services | 11% | |
| Construction services | 11% | |
| Telecommunications services | 11% or 6% | |
| Financial services | 6% | |
| R&D and technology services | 6% | |
| Information technology services | 6% | |
| Cultural and creative services | 6% | |
| Logistics and ancillary services | 6% | |
| Certification services | 6% | |
| Broadcasting, film and TV services | 6% | |
| Commercial ancillary services | 6% | |
| Other modern services | 6% | |
| Lifestyle services | 6% | |
| Sale of real estate | 11% | |
| Sale of intangible assets | 11% or 6% | |
For further details, please refer to the following websites:
CONTENT PROVIDED BY
- Mainland China
- Mainland China
