China VAT rate simplifications
- May 5, 2017 | Richard Asquith
China’s tax authorities have confirmed to proposals to reduce the number of VAT rates from 4 to 3. Goods such as farm produce, water, coal and gas will be reclassified from 13% to 11%.
The new three-rate band – 17%, 11% and 6% - will come into effect on 1 July 2017.
The annual VAT registration threshold will also rise to Yuan 500,000 from the current Yuan 300,000.