Friday, 02 August 2013 09:20
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Shipco Shanghai Advisory
Value Added Tax implementation in China
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In accordance with the Circular 37 (Cai Shui [2013] No. 37) on "Tax Policy Regarding Nationwide Implementation of VAT Pilot Program on Transportation and Modern Services Sectors", jointly issued by the Ministry of Finance (MOF) and the State Administration of Taxation (SAT) of PRC on 24 May 2013, the relevant VAT policies will be expanded nationwide in China effective from 1 August 2013. At the same time, tax regulations governing the VAT pilot program implemented since 1 January 2012 will be abolished.
Currently, Shipco Transport (Shanghai) Ltd. is categorized as a general taxpayer of the Modern Services Sector (Logistics and Ancillary Services). In compliance with the new regulations as stipulated in Circular 37, an additional 6% VAT will be levied on top of freight and charges currently payable in China in VAT invoices issued by us with effect from 1 August 2013.
This VAT however does not apply to freight and charges collected outside of China.
We will keep you informed if there any further changes to this tax regulation, or any changes of the common practice in the market ,(among those major Logistics and Ancillary Service Providers, including shipping lines, 3rd party of logistics providers and consolidators etc).
Please feel free to contact us if you require any additional information.
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