China Opens Consultation on Draft VAT Regulations to Clarify Taxation Scope and Rules

The Chinese Ministry of Finance opened a consultation on draft VAT regulations on August 11
The draft aims to clarify the VAT Law
It addresses the scope of taxation for goods and services and identifies in-scope taxpayers
Sales and VAT amounts must be separately stated on special VAT invoices
It outlines tax rates and taxability for exported goods, cross-border services, and intangible assets
Provides rules for crediting input tax and specifies non-deductible transactions
Covers incidental expenses, determined sales amounts, and abnormal loss items
Details exemption standards, tax incentive conditions, consolidated filings, and the start time for the general taxation method
Comments are due by September 10

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.