Our collection of resources based on what we have learned on the ground
Resources
Q&A
What are the value-added tax (VAT) rates in China as of December 2013?
- May 2014
- Members Access
Transportation services are subject to 11 percent VAT and modern services are subject to 6 percent VAT, except for tangible property lease services which are subject to 17 percent. Exported services are zero-rated or exempt from VAT. Zero-rated VAT a...
Q&A
What are the different statuses for value-added tax (VAT) payers in China?
- May 2014
- Members Access
VAT taxpayer statuses are divided into two categories: general taxpayers and small-scale taxpayers. General taxpayers are taxpayers with an annual sales volume of taxable services equivalent to or exceeding RMB5 million, while small-scale taxpayers a...
Q&A
What if an entity provides services that are subject to different value-added ta...
- May 2014
- Members Access
If a taxpayer provides taxable services that are subject to different rates, the sales volume for each tax rate should be accounted for separately, or else the highest tax rate applies. Similarly, VAT taxpayers who concurrently provide services subje...
Q&A
How is value-added tax (VAT) calculated for foreign entities or individuals in C...
- May 2014
- Members Access
If an overseas entity or individual provides taxable services in China and does not have an operating entity in China, the tax withholding party should calculate the amount of tax to be withheld using the following formula: Amount of tax to be wit...
Q&A
What is the difference between zero-rated value-added tax (VAT) and VAT exempt s...
- May 2014
- Members Access
The difference between zero-rated and exempted VAT is that, under zero-rated VAT the input VAT attributable to the export of services can be credited from VAT payable and/or refunded. Under the VAT exemption system, the input VAT attributable to expo...
Q&A
What happens if a service is eligible for both value-added tax (VAT) zero-rating...
- May 2014
- Members Access
If a service is eligible for both VAT zero-rating and VAT exemption, VAT zero-rating takes precedence over VAT exemption. Providers of zero-rated VAT services may opt to pay VAT or apply for VAT exemption instead by filing a relevant declaration. How...
Q&A
How does an enterprise obtain tax exemption for exported services in China?
- May 2014
- Members Access
To obtain exemption for exported services, a written cross-border service contract must be signed with the service recipient. In addition, the entire income from providing the service must be obtained from overseas. This could pose problems for inter...
Q&A
Has the tax burden for logistics enterprises increased due to the value-added ta...
- May 2014
- Members Access
The tax burden for logistics enterprises has nearly doubled since the implementation of the pilot reform. The 11 percent VAT rate for transportation industries replaced the previous 3 percent business tax (BT); while storage, delivery and cargo forwa...
Q&A
What factors should businesses in China consider to estimate possible changes in...
- May 2014
- Members Access
In estimating changes in their tax burden, businesses can consider the following factors: The proportion of expense that is input VAT deductible against the income; Ability to obtain certificates for claiming input VAT; Composition of suppliers;...
Q&A
What does a China Compulsory Certification (CCC) entail?
- May 2014
- Free Access
China Compulsory Certification (CCC) is a compulsory safety mark for domestically manufactured and imported products into China approved and jointly released by the General Administration for Quality Supervision and Inspection and Quarantine (GAQSIQ)...
Q&A
What does General Administration for Quality Supervision and Inspection and Quar...
- May 2014
- Free Access
General Administration for Quality Supervision and Inspection and Quarantine (GAQSIQ) is an administrative department directly under the State Council. It is in charge of quality supervision, inspection, animal and plant quarantine, and food safety f...
Q&A
What does China Quality Certification Centre (CQC) entail?
- May 2014
- Free Access
The China Quality Certification Centre (CQC) is a professional certification body under the China Certification & Inspection (Group) Co., Ltd. (CCIC). The CQC’s core functions include China Compulsory Certificate (compulsory safety mark for...
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