VATLive > Blog > VAT > China VAT lotto takes on rampant fraud - Avalara

China VAT lotto takes on rampant fraud

  • VAT
  • 11 April 2018 | Richard Asquith

China VAT lotto takes on rampant fraud

China’s Shanghai trials with a weekly anti-tax fraud cash prize draw for VAT invoices has been declared a success.

Since the start of 2018, Shoppers can upload barcodes on their VAT invoices to a phone app for a potential immediate €12.50 (equivalent)  prize. Their invoices are also entered into a weekly draw with a top prize of €50,000 (equivalent).

The Shanghai Office of State Administration of Taxation is trailing the scheme in key sectors, prone to under declared VAT sales, including: catering; accommodation; entertainment; and home improvements. Over 60,000 businesses in Shanghai are involved in the draw.

A number of countries in Europe have been running similar schemes, including Portugal and Greece.

Latest Chinese news
China VAT refunds to bolster exporters hit by new US tariffs
September 11, 2018

China has announced a further round of tax breaks to aid its exporters. This follows the US proposing new tariffs levying almost $267bn on Chinese imports. With $50...
EU VAT obstacles for Chinese companies
September 2, 2018

Chinese enterprises trading across the EU can be hindered by many barriers; particularly EU VAT, which can leave unsuspecting firms facing large fines or delays...
China VAT cuts boost exports to US despite tariff wars
July 12, 2018

China’s lowering of VAT in May on aluminium exports to the US and rest of the world has helped contribute to a 37% growth sales...

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.