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China excludes foreign companies from VAT pilot

  • VAT
  • 09 March 2013 | Richard Asquith

China excludes foreign companies from VAT pilot

The Chinese tax office, the State Administration of Taxation, has confirmed that non-resident companies will be excluded from the Chinese VAT pilot.

Reduction of Chinese tax bill

This will give them a reduction in their potential Chinese income tax bill.  A number of services currently provided to non-resident businesses are liable to the old Service Tax.  This is being replaced in the Pilot by China VAT, which is included in non-residents' Income Tax bill.  By excluding non-residents from the new VAT regime, the income tax base is reduced.


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 this year won International Tax Review's 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.