China’s Ministry of Finance and State Administration of Taxation recently released an announcement concerning certain changes in treatment of VAT.
The Announcement on Issues Concerning the Administration of Tax Collection under the Nationwide Business Tax (BT) to Value-added Tax (VAT) Pilot Conversion (Circular National Fiscal and Tax Policy [2013] No. 37), amends the original regulations on VAT Reform.
The amendments will become effective on August 1, 2013, and will impact invoicing procedures for freight forwarding services.
Once the State’s pilot on taxation policy for international freight forwarders becomes effective, freight forwarding companies are required to use the special VAT invoice for freight transportation services mentioned above, which will include a six percent VAT fee.