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"
- China Imposes 13% VAT on Contraceptives to Address Declining Birth Rate and Economic Worries
- China Reinstates VAT on Contraceptives to Address Declining Birth Rates and Economic Slowdown
- Contraceptives to Be Subject to VAT in China Starting January 1, 2026
- China Uncovers Widespread VAT Evasion Schemes Involving Multiple Companies and Millions in Losses
- Tax Evasion Scandal: 49 Shell Companies and Fake Invoices Orchestrated by Tianjin Changze Finance
