China to consolidate VAT rates for individual tax payers
- Jun 13, 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.
Chinese VAT reform means that the existing Business Tax is being replaced with a full
VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax
Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.