China e-commerce VAT

The Chinese state council has extended the VAT programme on e-commerce to a new group of cities.

The programme enables nominated cities to allow online shoppers to buy online without paying customs duties, consumption tax and VAT. This leaves only a reduced parcel duty to be paid.

The Chinese government plans to harmonise the reduced rates to cities outside of the trial group of cities.

The list of cities includes: Ningbo, Chongqing, Hefei, Zhengzhou, Dalian Suzhou Guangzhou, Shenzhen, Tianjin, Shanghai, Chengdu and Qingdao. The programme started in 2013 in seven cities.