VAT pilot programme expands to Beijing
June 08, 2012 | BY
clpstaff &clp articlesBeijing is set to follow from Shanghai's VAT pilot programme as early as July 1, but it is unclear how closely the city will follow Shanghai's example
The Beijing Municipal Office of the State Administration of Taxation released forms on its website last week to for companies affected by the programme, but did little else to publicise the development.
Similar to Shanghai, the value added tax (VAT) applies to the transportation and certain modern service sectors like research and development, information and technology services and logistics. The move is part of the government's plan to transform the economy from a manufacturing hub and encourage modern service sectors.
“The implementation of the VAT pilot programme means companies in the service sector are willing to invest in equipment and resources, upgrading their capability as they can offset the corresponding VAT” wrote Lawrence Hu, a partner specialising in tax at MWE Law Offices in Shanghai, in China Law & Practice's May cover story on this initiative.
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now