In accordance with the Cai Shui (2013) No. 37 (Circular 37) notice on “Tax Policy Concerning Nationwide Implementation of VAT Pilot Program for Transport and Modern Service Sectors” jointly issued by the Ministry of Finance and the State Administration of Taxation, as from 01 August 2013 the tax policy concerning China Value Added Tax (VAT) pilot program will be expanded nationwide. At the same date/time, the relevant tax policies for initial pilots will be repealed.
With the implementation of the Cai Shui (2013) No. 37 (circular), a Value Added Tax of 6% is applicable for all charges pay at PRC and this 6% is based on the issuances of VAT invoice.
We, as Transport and Modern Service Sectors, are obliged to follow the policy. From 01/Aug/2013, all cost air and ocean will be increased by 6%.
If you have any questions about how this new tax policy will affect you or you’re thinking about expanding into China and would like to know how China’s VAT system differs from other VAT systems around the world, don’t hesitate to give us a call at ICE: 1300 CARGO1 or contact us via our website.
