March 28, 2019 - The Chinese government recently announced a new policy to decrease the Value Added Tax (VAT) rate. As such, China will reduce the standard VAT rate from 16% to 13% (this applies to the manufacturing sector and import VAT as well).
Additional details include:
- The 10% VAT rate, which applies to construction and transportation services will be lowered to 9%
- The 6% VAT rate, which applies to other services, will remain the same.
The new VAT rates will go into effect on April 1, 2019
Should you have any questions, please reach out to BDP International.
Source: The Chinese Ministry of Finance Tax Administration