Announcement of the State Administration of Taxation on Promulgating the Administrative Measures for Value-added Tax Exemption for Cross-border Taxable Services in the Collection of Value-added Tax in Lieu of Business Tax (for Trial Implementation)

Announcement of the State Administration of Taxation on Promulgating the Administrative Measures for Value-added Tax Exemption for Cross-border Taxable Services in the Collection of Value-added Tax in Lieu of Business Tax (for Trial Implementation)

Announcement of the State Administration of Taxation [2013] No.52

September 13, 2013

In order to standardize tax administration of cross-border taxable services, the State Administration of Taxation (hereinafter referred to as the "SAT"), in accordance with relevant prevailing provisions on value-added tax (hereinafter referred to as the "VAT"), has formulated the Administrative Measures for Value-added Tax Exemption for Cross-border Taxable Services in the Collection of Value-added Tax in Lieu of Business Tax (for Trial Implementation) (hereinafter referred to as the "Measures"), which are hereby promulgated.

It is hereby notified.

Administrative Measures for Value-added Tax Exemption for Cross-border Taxable Services in the Collection of Value-added Tax in Lieu of Business Tax (for Trial Implementation)

Article 1 Where entities and individuals within the territory of the People's Republic of China (hereinafter referred to as the "Taxpayers") provide cross-border taxable services (hereinafter referred to as the "Cross-border Services"), the Measures shall apply.

Article 2 The following Cross-border Services shall be exempt from VAT:
1. engineering survey and exploration services for engineering and mineral resources outside the territory of the People's Republic of China (hereinafter referred to as the "Territory").
2. conference and exhibition services for conference and exhibition located outside the Territory.
Organization and arrangement services provided for clients attending conferences and exhibitions held outside the Territory are deemed as conference and exhibition services for conferences and exhibitions located outside the Territory.
3. warehousing services with storage locations outside the Territory.
4. tangible personal property leasing services for subject matter used outside the Territory.
5. distribution and broadcasting services for radio, film and television programs (works) provided outside the Territory.
Distribution services for radio, film and television programs (works) provided outside the Territory refer to the distribution of radio, film and television programs (works) and transfer of coverage or broadcasting rights of sporting events and other cultural and sporting activities to entities or individuals outside the Territory that are used for broadcast and coverage outside the Territory.
Broadcasting services for radio, film and television programs (works) provided outside the Territory refer to broadcasting the radio, film and television programs (works) at the cinema, theater, video halls and other places outside the Territory.
Broadcasting radio, film and television programs (works) outside the Territory through radio station, television stations, satellite communications, the internet, cable television and other broadcast wireless or wired devices located within the Territory are not considered broadcasting services for radio, film and television programs (works) provided outside the Territory.
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