- China clarifies VAT rules for e-commerce delivery and logistics services.
- Delivery services are taxed at 9% VAT, with a 3% rate for small-scale taxpayers.
- Input VAT deductions are allowed for expenses like vehicles and fuel.
- Cross-border deliveries may be zero-rated with proper documentation.
- Firms must issue VAT invoices, file monthly returns, and classify services accurately.
- Non-compliance can lead to penalties and loss of input VAT credits.
- Proper VAT compliance is crucial due to tight margins and competition in the logistics sector.
Source: fiscal-requirements.com
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.
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