China Unveils VAT Policies to Promote Development of Hard-Hit Service Sectors

The Ministry of Finance and the State Taxation Administration recently issued a joint notice on value-added tax (VAT) policies to help China’s hard-hit service sectors. The policies include extension of enhanced VAT tax credits for consumer services until 31 December 2022, and suspension of prepayment of VAT by subsidiaries of aviation and rail transport enterprises from 1 January-31 December 2022.