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China harmonises levies with VAT

  • Aug 18, 2020 | Richard Asquith

The Chinese Ministry of Finance has announced plans to harmonise the 6% City Maintenance & Construction and the 3% Construction Services levies with Chinese VAT

A bill has now been passed by the National People’s Congress to start the process. Initially, the tax base for both levies will be harmonised with VAT. A consolidated urban rate will be set at 7%; and a 5% for those outside of major conurbations. A 1% charge is being set for countryside dwellers.

The new rates come into effect on 1 September 2021.


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 is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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