To support the opening-up of the commodity futures market, on 18 February 2020, the Ministry of Finance and (MOF) and STA jointly released MOF/STA PN [2020] No. 12 (“PN 12”) announcing the preferential VAT policies for commodity futures market. According to PN 12, from 30 November 2018 to 29 November 2023, the bonded delivery of commodity futures that are opened to overseas investors as approved by the State Council shall be temporarily exempt
from VAT.
Where the commodities actually delivered in above-mentioned futures transactions are imported or exported, they shall apply the prevailing import/export tax policies for commodities. The physical delivery of non-bonded commodity futures shall be conducted in accordance with Guoshuifa [1994] No. 244 (“Circular 244”, i.e., Notice regarding Specific Measures for VAT Collection on Commodity Futures).
Source EY
Latest Posts in "China"
- EU and China Agree Trade Understandings on Tariffs, Hybrid Vehicles and Market Access
- China to Cut Export VAT Rebate for New Energy Vehicles
- China Reduces VAT Export Rebate for New Energy Vehicles from April 2027
- The Hidden Proxy Exposed: Tax Service Agent Helps Fake VAT Invoices
- Liuzhou Tax Bureau Penalizes Tax Service Professional for VAT Invoice Fraud Assistance
