Legislation roundup: VAT reform and foreign e-commerce tax
April 07, 2016 | BY
Katherine Jo &clp articles &The VAT regime has been fully expanded nationwide across all industries and goods bought on foreign e-commerce sites have been subject to VAT and consumption tax
VAT Reform
Ministry of Finance and State Administration of Taxation, Circular on Comprehensively Launching a Pilot Project for the Levy of Value-added Tax in Place of Business Tax
From May 1 2016, a pilot tax project will be comprehensively launched nationwide, with all business taxpayers, including those in the construction industry, real estate industry, finance industry and daily-life service industry brought into the scope of the pilot project, where they will change from paying business tax to paying value-added tax.
See the digest for more details.
Ministry of Finance and State Administration of Taxation, Implementing Measures for the Pilot Project for Levy of Value-added Tax in Place of Business Tax
The tax rate on the provision of transport, postal, basic telecommunications, construction and immovable property leasing services, the sale of immovable property and the transfer of land use rights shall be 11%. The tax rate on the provision of tangible movable asset leasing services shall be 17%. The tax rate on cross-border taxable acts carried out by domestic entities and individuals shall be 0%.
See the full translation.
Further reading
E-commerce Tax
Ministry of Finance, General Administration of Customs and State Administration of Taxation, Circular on the Import Tax Policy on Cross-border E-Commerce Retail
The maximum amount on any single transaction of retail import goods through cross-border e-commerce is Rmb2,000, and the maximum annual transaction amount is Rmb20,000 for any individual. The duty rate on retail import goods through cross-border e-commerce falling below the maximum is provisionally set at 0%; and the exemption of import stage value-added tax and consumption tax is cancelled and such taxes shall provisionally be levied based on 70% of the statutory tax amount payable.
See the full translation.
Further reading
VAT Reform
Ministry of Finance and State Administration of Taxation, Circular on Comprehensively Launching a Pilot Project for the Levy of Value-added Tax in Place of Business Tax
From May 1 2016, a pilot tax project will be comprehensively launched nationwide, with all business taxpayers, including those in the construction industry, real estate industry, finance industry and daily-life service industry brought into the scope of the pilot project, where they will change from paying business tax to paying value-added tax.
See the digest for more details.
Ministry of Finance and State Administration of Taxation, Implementing Measures for the Pilot Project for Levy of Value-added Tax in Place of Business Tax
The tax rate on the provision of transport, postal, basic telecommunications, construction and immovable property leasing services, the sale of immovable property and the transfer of land use rights shall be 11%. The tax rate on the provision of tangible movable asset leasing services shall be 17%. The tax rate on cross-border taxable acts carried out by domestic entities and individuals shall be 0%.
See the full translation.
Further reading
E-commerce Tax
Ministry of Finance, General Administration of Customs and State Administration of Taxation, Circular on the Import Tax Policy on Cross-border E-Commerce Retail
The maximum amount on any single transaction of retail import goods through cross-border e-commerce is Rmb2,000, and the maximum annual transaction amount is Rmb20,000 for any individual. The duty rate on retail import goods through cross-border e-commerce falling below the maximum is provisionally set at 0%; and the exemption of import stage value-added tax and consumption tax is cancelled and such taxes shall provisionally be levied based on 70% of the statutory tax amount payable.
See the full translation.
Further reading
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