LehmanBrown publishes China VAT guide

9th March 2015

MGI World MGI Asia Area, China Dragon image

MGI members across Asia and the rest of the world can look within the alliance for the latest information on taxation in China.

LehmanBrown, which has offices in Beijing, Shanghai, Shenzhen, Tianjin, Guangzhou and Hong Kong, has just published a guide to the most recent amendments to China’s value added tax regime.

The article is of use to members with clients who have any kind of dealings with mainland China. 

Senior Partner Dickson Leung says members can turn to LehmanBrown for help with any queries they may have about the Chinese market.  Dickson is the North Asia Circle Leader for MGI in Asia and is very active in the organisation, regularly attending both area and global meetings.

"VAT is an important area for companies operating in China and this guide sets out some of the key changes," he says. "LehmanBrown produces regular expert updates on many other areas of tax and regulation too."

The VAT publication explains some of the most recent amendments; in particular the inclusion of the postal, telecoms and rail sectors in the 11 per cent VAT band.

For foreign operators there remains some confusion. “While the telecommunication services rendered to overseas entities are exempted from VAT, it is uncertain whether the overseas service suppliers can be eligible for the same preferential VAT treatment,” LehmanBrown notes.

The publication also details applicable tax rates for sectors, exemption criteria and categories of VAT exemption.

“Such clarification should be welcomed by the taxpayers who intend to apply for VAT exemption since it provides the clear and standardised rules in terms of VAT exemption application and recognition process,” says LehmanBrown.

“Moreover, the scope of the VAT exemption has been expanded to include those associated with postal and telecommunication services. It can be anticipated that as the scope of the VAT pilot program broadens further, expanded service would fall into the categories of VAT exemption.”

Click here to read the full article on China VAT reform 

To find out more, head to the website or the LehmanBrown member profile page on MGI World

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