China to consolidate VAT rates for individual tax payers
- 13 June 2014 | Richard Asquith
The Ministry of Finance is expected to shortly announce that it will simplify the Chinese Value Added Tax rates for taxable persons.
Chinese VAT rate vary from 2% up to 17%. Currently, small enterprises may opt for a flat rate 3% Chinese VAT, but forfeit the right to deduct any input VAT suffered. Small businesses are manufactures with sales u pto Yan 500,000 per annum; or wholesalers of goods with sales up to Yan 800,000 per annum.
The State Administration of Taxation is now going to effectively extend the 3% rate to taxable persons from 1 July 2014.