China export services VAT exemption

China’s State Administration of Taxation authority has provided further guidance on the application and rules for zero VAT rating on export services.

In a new bulletin, it lists all services which are eligible for the VAT zero rating. Typically IP, design and some outsourcing IT and administrative services. Any companies seeking exemption must register as an official exporter to ensure they are entitled to seek input VAT relief on local expenditure.

To be exempt from 16% or 11% Chinese VAT, a supporting contract must be in place, and any revenues must flow from outside of the Mainland China to the Chinese vendor.