VATupdate

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China clarifies input VAT credits for domestic transport services

  • Businesses in China can continue to claim input VAT credits for domestic transport expenses incurred by its contracted employees, including dispatched staff.
  • General VAT taxpayers will also be allowed to claim VAT input credits for domestic passenger transport services and credit its input tax against its output tax.
  • Taxpayers need to provide a hard copy or electronic copy of qualified invoices to claim VAT credit.

Source: china-briefing.com

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